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Toyota Supra, Rolls-Royces, dozens of BMWs recalled for backup camera issue

Weeks after Nissan and Infiniti recalled more than 1.2 million vehicles for a potentially dangerous programming oversight in the backup camera settings, BMW has issued a recall for similar problems. The recall, which covers 257,481 vehicles, includes numerous BMWs, as well as two Rolls-Royce models, and the 2020 Toyota Supra.  In total, the recall potentially affects 51 different products. This includes the 2018 BMW 540D, 2018–2019 BMW 640I, Rolls-Royce Phantom, 2018–2020 BMW 530e, 530i, 540i, M5, M550i, X3, 2019 Rolls-Royce Cullinan, 2019–2020 BMW 330I, 740Le, 740Li, 745Le, 750Li, 840i, M340i, M850i, X4, X5, X6, X7, Z4, and 2020 Toyota Supra. On certain BMW models, xDrive variants are also included. According to NHTSA campaign No. 19V684000, "The back-up camera and display settings can be adjusted such that the rearview image is no longer visible and the system will retain that setting the next time the vehicle is placed in reverse." If there is no display image when backing up, drivers can't properly see, and the car no longer meets modern safety regulations. Specifically, Federal Motor Vehicle Safety Standard (FMVSS) number 111, "Rearview Mirrors."  The recall was filed on September 27, 2019, and BMW plans to begin notifying affected owners in November. BMW, Toyota, and Rolls-Royce dealers will update the vehicles' software, which should fix the problem. 

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.

BMW shuffles chairs in its design department

BMW Group has made some changes to its design team since August 1, and has shuffled top personnel to different positions at BMW Design, Mini Design and Rolls-Royce.
The BMW Design team led by Karim Habib (middle, right) gains a new head of Exterior Design in Domagoj Dukec (right), who has worked for the exterior design team since 2010 and shaped the Concept Active Tourer.
Oliver Heilmer (left), who has worked for BMW's interior design unit since 2000 and designed the 5 Series interior, replaces Marc Girard as head of Interior Design BMW Automobiles. Marc Girard goes to manage BMW's subsidiary design group, BMW DesignworksUSA.