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BMW warns profits will fall, plans $13.6 billion in cost-cutting

FRANKFURT, Germany — BMW said Wednesday that profits in 2019 will be "well below" last year's, and it will cut 12 billion euros ($13.6 billion) in costs by the end of 2022 to offset spending on new technology. The company said profits would be eroded by higher raw materials prices, the costs of compliance with tougher emissions requirements and unfavorable shifts in currency exchange rates. The Munich-based automaker also faces increased uncertainty due to international trade conflicts that could lead to higher tariffs. "Depending on how conditions develop, our guidance may be subject to additional risks; in particular, the risk of a no-deal Brexit and ongoing developments in international trade policy," said Chief Financial Officer Nicolas Peter. The company forecast a profit margin of 6 to 8 percent for its automotive business, short of the long-term strategic target of 8 to 10 percent, which it said still "remains the ambition" for the company if given "a stable business environment." BMW said it had no plans for layoffs even as it outlined cost saving measures that include dropping half of its engine variants as it seeks to reduce product complexity. The BMW, Mini and Rolls-Royce brands are to get a single sales division. Peter said that given the headwinds to earnings, "we began to introduce countermeasures at an early stage and have taken a number of far-reaching decisions." The company said the measures were needed "to offset the ongoing high level of upfront expenditure required to embrace the mobility of the future." Automakers around the world have faced heavy up-front costs for technology expected to change how people get from one place to another in the next decade. Those include electric cars and renting cars through smartphone apps. Yet the returns from such investments remain uncertain and auto companies face competition from tech firms such as Uber and Waymo. BMW made 7.2 billion euros ($8.2 billion) in net profit last year, down 17 percent from 2017, when it booked a gain of $1 billion from U.S. tax changes. The company faced headwinds from increased tariffs on vehicles exported to China from the United States. It also suffered from turmoil on the German auto market when companies faced bottlenecks getting cars certified for new emissions rules. BMW faces uncertainty from U.S.-China trade tensions that could result in new tariffs if talks do not result in an agreement. U.S.

Mini Cooper five-door exists and has been spotted

The two-door Mini Cooper is getting two additional portals in its next generation. A coming five-door Cooper S with central exhaust has been spotted out testing, the idea presumably being that it will pose a better challenge to other small, premium hatches in the segment like the A1 Sportback from Audi. Based on the same UKL platform that will support the production version of the BMW Concept Active Tourer, the wheelbase has been lengthened to make more room for rear passengers.
It should be revealed on the auto show circuit at some point next year, getting buyers ready for its production in 2014. We'll find out then if it gets a special name and how it fits in with - or perhaps replaces - the Clubman.

Mini's matte Countryman Black Knight Edition rises

Mini is certainly no stranger to a special edition, as unique option and styling packs have been a staple of the Mini line since its return to the US market, but it's next special trim is quite a big departure from previous cars. It's based on the Countryman, and is called the Black Knight Edition.
As you cans see from the image up top, it'll sport a sinister, matte-black paint scheme, making this Mini not unlike BMW's range of Frozen Edition cars. First reported on by those Mini-obsessed folks at MotoringFile, the Black Knight Edition Countryman will be limited to 60 units, and will be offered on a first-come, first-serve basis, making this car quite a bit different from previous special editions, which generally stuck around for a full model year.
According to MF, the matte finish will only be available on the Cooper S Countryman, although oddly, one of the teaser images shows a John Cooper Works badge. BKE models should be coming nearly loaded, which means that there's not a lot of customization done and the price tag is probably going to be exorbitant for a Mini. Buyers will, though, have the choice of front- or all-wheel drive and a choice of six-speed manual or six-speed automatic.