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BMW Hack: the auto industry's big cyber-security warning sign [w/video]

A cyber-security hole that left more than two million BMWs vulnerable may be the most serious breach the auto industry has faced in its emerging fight against car hackers. Security experts are not only concerned that researchers found weaknesses inside the company's Connected Drive remote-services system. They're worried about how the hackers gained entry. German researchers spoofed a cell-phone station and sent fake messages to a SIM card within a BMW's telematics system. Once inside, they locked and unlocked car doors. Other researchers have demonstrated it's possible to hack into a car and control its critical functions, but what separates this latest exploit from others is that it was conducted remotely. In an industry that's just coming to grips with the security threats posed by connectivity in cars, the possibility of a remote breach has been an ominous prospect. The fact it has now occurred may mean a landmark threshold has been crossed. "It's as close as I've seen to a genuine, remote attack on telematics," said Mike Parris, head of the secure car division at SBD, a UK-based automotive technology consulting company. "At this point, the OEMs are trying to play a game of catch up." Previous researchers in the automotive cyber-security field have launched remote attacks that are similar in nature, though not the same. In 2010, academics at California-San Diego and the University of Washington demonstrated they could remotely control essential functions of a car, but they needed to be within close proximity of the vehicle. In November 2014, researchers at Argus Cyber Security remotely hacked cars with an aftermarket device called a Zubie plugged into their diagnostic ports. But the remote attack was predicated on the Zubie dongle having physically been installed in the car. With the BMW hack, researchers compromised the car without needing physical access or proximity. The German Automobile Association, whose researchers conducted the BMW study, said it infiltrated the system "within minutes" and left undetected, a feat that raises the possibility that a hacker could do the same in a real-world scenario. Messages Were Sent Unencrypted Security analysts described the BMW infiltration as a "man in the middle" attack. Researchers mimicked a cellular base station and captured traffic between the car and the BMW Connected Drive service, which drivers can access and control via an app on their cell phones.

BMW 1 Series GT spied in 7-seat trim

As BMW prepares to introduce its first-ever front-wheel drive car, the upcoming 1 Series GT, it looks like there will be at least two versions of the car. A conventional-looking hatchback was spotted testing late last year, but now we see an extended-length version in order to accommodate a third row of seats.
Judging by these spy shots, this 1 Series GT prototype has received an extended wheelbase, larger rear doors and more upright D-pillars compared to our previous spy shots (show in the gallery below) all with the aim of creating additional passenger and cargo space. Like the smaller 1 Series GT, this longer model would likely carry over the same powertrain options, which are expected to consist of three- and four-cylinder engines, a hybrid system and the choice of front- or all-wheel drive. The 1 Series GT could make its debut this fall at the Frankfurt Motor Show, but we might have to wait until next year to see the people mover.

Audi leading rival BMW in worldwide luxury sales race

If you thought competition among the German luxury automakers was hot before, it looks like things are just getting started. For the first two months of the year, Audi has sold more cars than BMW worldwide by just 383 cars.
Audi claims to have sold 242,400 vehicles through February, up 9.3 percent from last year, compared to 242,017 units from BMW, up 8.9 percent, in the same period. While the advantage is tiny, its implications could be huge because Bimmer has been the leader in the premium car segment for the last nine consecutive years. Mercedes-Benz lags behind them somewhat at 229,630 vehicles through February. According to Bloomberg, at this time last year Audi had sold 429 fewer cars than BMW.
The growth is all part of Volkswagen Group's goal to become the world's largest automaker. It currently ranks in second when its heavy truck businesses are considered. The German automotive giant also wants to be the world's leading premium carmaker. "Competition in the premium segment is more intense than ever," said Audi CEO Rupert Stadler to Bloomberg.