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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 Wraith officially revealed in profile

Well here's a nice twofer. On the same day Rolls-Royce releases its first official teaser image showing the 2014 Wraith, we also get a look at the car undergoing some cold-weather testing courtesy of some new spy shots. As the coupe version of the Ghost, the 2014 Rolls-Royce Wraith will make its official debut at the Geneva Motor Show in March, and it's expected to go on sale during the fourth quarter of this year.
Rolls-Royce already confirmed plenty of information in a teaser it released last week, but the latest image shows us a clear shot of what the car's midsection will look like. Comparing this image and the spy shots, we can see that the Wraith will have a pretty sleek - (almost Bentley Continental GT-like) roofline, and, like the Phantom Coupe, it will have rear-hinged doors. We can also tell from the spy shots that it seems to be keeping the same face as the Ghost and taillights, too.
Be sure to check out the latest spy photos for the Wraith as well as a brief press release from Rolls-Royce by scrolling below.

Aeroboat packs 1,100 seahorses of Rolls-Royce Merlin V12 power

We don't typically cover boats here - this is, after all, Autoblog and not Aquablog - but every so often something comes along that makes us want to dip our toes in the water, whether it's a Jaguar-designed speedboat, a Gulf-liveried megayacht or a Lamborghini-powered Riva Aquarama. This is another one of those occasions.
Set to be unveiled at the Salute to Style show in July at The Hurlingham Club in London, the Aeroboat is a motor yacht that seems to blend retro and furutistic lines in equal measure that would make Jules Verne proud without going Steampunk. Inspired by the Spitfire fighter plane, the Aeroboat packs aircraft-inspired switchgear and shock-mounted seats into a long, sleek form. But what really has our interests piqued is what lies beneath the stylish decks.
Each of the dozen Aeroboats to be built will pack a reconditioned, marinized, fuel-injected Rolls-Royce Merlin V12 engine - the same 27-liter powerplant that propelled the Spitfire. With 1,100 horsepower on tap, it's expected to propel the Aeroboat up to a top speed between 75 and 95 knots, or 86-109 miles per hour by landlubber standards, which is pretty damn fast on the open water.