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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.

BMW unleashes 160-hp S 1000 R streetfighter motorcycle

BMW Motorrad released the S 1000 RR superbike in 2010, but for those who'd like to take it down a (small) notch, the German motorcycle maker introduced the 2014 S 1000 R, a slightly less-ballsy version of the range-topping superbike, at EICMA on Tuesday.
In its transformation from 193-horsepower superbike to 160-hp sportbike, BMW detuned the 999cc inline four-cylinder engine a bit by lowering the redline from 13,000 RPM to 11,000 RPM, where peak power is made. Torque is rated at "approximately" 83 pound-feet (the RR makes 82.5 lb-ft), but more importantly, engineers tweaked the torque delivery in the R's favor by redesigning the cylinder-head ducts, modifying the camshaft profiles and reprogramming the engine management system. The result is seven lb-ft more torque than the RR up to 7,500 RPM. The R's torque peak occurs at 9,250 RPM.
The bike comes standard with ASC (automatic stability control) and "Race" ABS. Riders can choose between two modes, "Road" and "Rain," which adjust ABS and ASC settings to suit dry or wet roads. DTC (dynamic traction control) is available as an option, and with two modes, "Dynamic" and "Dynamic Pro," the system optimizes traction and helps riders achieve maximum acceleration.

BMW X2 in the works?

BMW could bring yet another niche-busting product to the market in 2017 if a report form a forum is to be believed. According to the BMW X1 Forum of Bimmerpost, 2017 could see the debut of the BMW X2. Yes, X2.
Allegedly, this car will ride on the UKL platform, which is slated to underpin both the next-generation Mini Countryman and BMW X1. The X2, though, will play the role occupied by the X6 relative to the X5 - that means it'll be the same basic vehicle with a more sporting (i.e. less practical) roofline. The denizens of the forum claim the X2 will only be offered with xDrive all-wheel drive, and unlike the X6 and soon-to-arrive X4, it will be available in both three and five-door variants.
We reached out to BMW for comment, and got the typical "There's no plans as of right now" statement, although spokesman Dave Buchko did add that, "It's fun to speculate."