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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 shows off commemorative Silver Ghost — with actual silver

Ultra-luxury marque Rolls-Royce has been busy developing its ultra-exclusive, 35-model Silver Ghost Collection in homage to the original 40/50-horsepower Silver Ghost from 1907 that traveled a then-remarkable 14,371 miles. Now it has released a video to show off its opulent new creation. Rolls-Royce says it incorporated visual elements from the original Ghost in the new four-door model. Most obvious is the car's silver paint scheme, with a hand-painted coachline that takes eight hours to apply and contains pure silver particles. There's also a solid silver Sprit of Ecstasy hood ornament (remember those?) with an AX201-stamped hammered-copper hallmark at its base, which harks back to the maiden car's registration plate and the material that featured extensively in the original car's engine bay. The video also shows off the black grille vanes, chrome wheel surrounds engraved with the phrase "Silver Ghost — Since 1907," open-pore tudor oak trim with silver inlays. The front fascias get a more protruding grille frame with inset grille, plus redesigned wheels. Inside, the cars get Forest Green leather to match the original, with limited edition stamps on the door jambs and dashboard clock, plus improved sound deadening with the addition of special acoustic glass. There's also lots of running footage of the Silver Ghost navigating a pastoral lane. It's decidedly heady stuff for most of us common folk, indeed. View 5 Photos Related Video:

Neglected Rolls-Royce Phantom may be the saddest of all time

Rolls-Royce prides itself on exemplifying the pinnacle of automotive elegance. The brand is synonymous with quality and luxury. However, in the end even a Rolls is still just a car, and if you don't keep it up, it's bound to fail. That deterioration can be seriously fun to watch, though.
This 2005 Rolls-Royce Phantom might now be one of the worst cars on the planet and only has a little over 95,000 miles on it. The video claims that the original owner in New Jersey didn't make payments on the car for three years but rented the sedan out to people and used it for a livery service. Now, it's repossessed and would probably cost more to fix than it's worth.
This Phantom has had a hard life. We don't want to spoil too many of the broken pieces because they pile up to become increasingly absurd. However, the pièce de résistance must to be the broken Spider-Man umbrella in the door.