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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.

Rolls-Royce predicts it will set a delicious production record in 2020

Rolls-Royce suspended production at its Goodwood, England, factory in March 2020 in response to the coronavirus pandemic, but there's at least one part of its business that's not affected by the temporary shutdown. The 250,000 bees that live and work near its factory are on track to set another production record in 2020. The BeeMW-owned (sorry) firm opened its Bee Apiary in 2017. It currently consists of six hives named Phantom, Wraith, Ghost, Dawn, Cullinan, and Spirit of Ecstasy, respectively. Rolls-Royce announced the quarter-million bees that buzz around its premises emerged from winter in excellent health, and they're expected to make even more honey in 2020 than in 2019 (though Rolls-Royce didn't specify a quantity). Clearly, social distancing and work-from-home orders don't apply here. Rolls-Royce works with local beekeepers to process the honey when it's ready, but don't look for it in the breakfast aisle the next time you're out buying groceries. It's exclusively served to the company's guests, like the customers who travel to Goodwood to configure or take delivery of a car. Put another way, a taste of Rolls-Royce-branded honey will cost you at least $300,000 and a round-trip ticket to the British countryside. Surprisingly, the rivalry between Rolls-Royce and Bentley continues in the world of beekeeping. In 2019, Bentley built two giant hives for 120,000 bees near its headquarters in Crewe, England. It predicted they'd make about 33 pounds of honey annually, which amounts to about 50 jars. Ford keeps tens of thousands of bees, too; it's caring for at least 80,000 bees near the Rouge factory that currently manufactures the F-150. Bees are an often-overlooked part of the ecosystem. Plants depend on pollination to reproduce, and bees are nature's main pollinators; we'd ultimately have less food if bees were eradicated from the planet. They're endangered in many parts of the world, which is why some automakers are choosing to give them a home.  Related Video: Featured Gallery Rolls-Royce Bee Apiary Green Weird Car News Rolls-Royce

Rolls-Royce bringing three customer-commissioned cars to Beijing show

Rolls-Royce inaugurated a customization center called Private Office in Shanghai, China, in 2023, and it will bring the first three cars created in the facility to the 2024 Beijing show. The builds are based on the Spectre, the Phantom, and the Ghost, and they're inspired by travel. The cars are grouped under the Spirit of Expression label, and each one is given a name. Shown above, the Spectre is named "Escapism" and finished in a color combination that references a flower called lantana found in the South American tropics. The top part of the coupe is painted in Tempest Gray while the bottom wears Lantana Red paint. This color also appears on the center caps fitted to the 23-inch wheels. Inside, there's Selby Gray, Purple Silk, and Sunset leather upholstery, Sunset piping, and a Starlight headliner with Sunset-colored lights. Rolls-Royce Phantom Spirit of Expression View 15 Photos Somewhat more subtle than the Spectre, the Phantom is an extended-wheelbase model named "Magnetism" that's also characterized by a two-tone look. Designers headed to Sicily's Cala Luna beach for inspiration: There's Kabira Blue paint above the beltline and Cala Luna Sand paint below it. Arctic White and Cala Luna Sand accents add a finishing touch to the look. The interior gets a Starlight headliner with white and Galileo Blue lighting, an array of stainless-steel inlays, as well as Blue Gray, Navy Blue, and Arctic White leather upholstery. Rolls-Royce Ghost Spirit of Expression View 12 Photos We're off to Boracay Island in the Philippines for the Ghost, which is called Expressionism. Boracay Blue paint "evokes the sunsets over Boracay Island," according to Rolls-Royce, and it's accented by a hand-painted Lime Green stripe added as a reminder of the island's tropical landscapes. Black, Arctic White, and Lime Green leather upholstery dominates the interior. Look up, and you'll see a Starlight headliner that features a unique wave pattern, "like silk in the wind," created with over 1,000 "stars." There are eight shooting stars, too. Rolls-Royce notes that the three Spirit of Expression cars were commissioned by customers, so they'll presumably head off to their new home when the Beijing show closes its doors. The brand will open additional Private Office centers later in 2024, meaning we'll undoubtedly see additional one-off models before the end of the year. Rolls-Royce points out that most of its clients pay extra to customize their car.