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BMW 2 Series Active Tourer is the world's first front-drive Bimmer [w/videos]

While BMW has been showing concepts for its Active Tourer for over a year, they never seemed entirely real. Why would BMW, a company that has built its image on sporty, rear-wheel drive sedans, move into the five-door, front-wheel-drive market? The answer is still not entirely clear, but the new BMW 2 Series Active Tourer is very real. It launches in Europe later this year and is rumored to come to the US in 2015.
To brand purists, a front-wheel drive BMW may seem anathema to everything the company has built, and the production Active Tourer has clearly been built to provide drivers with a luxurious but utilitarian package first and foremost. It is 170.9 inches long and rides on a 105.1-inch wheelbase, but despite its compact dimensions, its high roof allows for 16.53-cubic-feet of cargo space with the rear seats up or 53.33 cubic feet with them folded flat. Its general appearance is nearly identical to the previous concepts, except with a blunter nose and cleaner lines. The front end wears BMW's traditional dual circular headlights and naturally, while the profile incorporates the company's traditional Hofmeister kink into the greenhouse's rear pillar. The interior has been designed to be especially useful with a sliding rear seat, adjustable rear backrests, fold-flat backrests and optional features like an automatic tailgate and panoramic sunroof.
Unlike both previous concepts, none of the Active Tourer models at launch use hybrid power. For Europe, the hatchback is going on sale with three engine options. The basic version is the 218i Active Tourer with a 1.5-liter, turbocharged three-cylinder with 134 horsepower that we just previewed in the 2014 Mini Cooper - good enough for average fuel economy of 48 miles per gallon in the EU cycle when equipped with a six-speed manual. The next step up is the 225i Active Tourer with a 2.0-liter turbocharged four-cylinder that makes 228 hp and offers 39-mpg average fuel economy. Finally, there is the there is the 218d Active Tourer with its 148-hp, 2.0-liter turbodiesel and 57 mpg average fuel economy on the EU cycle. A six-speed manual is standard on all of them, but there is a six-speed automatic option for the 218i and eight-speed automatics available for the 225i and 218d. All-wheel drive will be available on future models.

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.

U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.