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BMW looking to save billions with cost cuts

BMW is planning a fairly extensive overhaul in a bid to recoup some its annual costs, with CEO Norbert Reithofer (pictured above) aiming to save three to four billion euro ($4 to $5.4 billion) per year to help keep the company's profit margins between eight and 10 percent, while also maintaining investments in production expansion and new tech. BMW's profit margins sat at 9.4 percent in 2013.
According to Automotive News Europe, Reithofer is none too pleased about costs at Mini and on the 1 Series, although neither AN nor its source story, from Germany's Manager Magazin, elaborate on what steps could be taken to improve losses on either project. That makes it hard to figure out just where the fat will be trimmed from.
What may happen, though, is that BMW attempts to trim 100 million euros ($135 million) from its German labor costs each year; a solution hinted at a few weeks ago by Germany newspaper Muenchner Merkur. While a dramatic cost reduction, 100 million euros still doesn't begin to even approach the savings envisioned by Reithofer.

As US exports top 2 million, is America becoming the world's source of cheap cars?

North American auto production is booming with 2014 figures just shy of the of the 17.3-million vehicle record set in 2000. With more models being built on the continent, even more are being shipped overseas. Factories in the US exported 2.1 million cars last year – the highest number ever. About half of those went to Canada and Mexico, but more than ever have been heading to places like the Middle East and China. The upswing comes in part from from after-effects from the Great Recession, according to The Wall Street Journal. With a weak dollar and lower production costs after the financial crisis, building vehicles in the US was relatively cheaper and more competitive in the world. At the same time buyers around the world are going crazy for crossovers. According to the WSJ, BMW and Mercedes-Benz are already exporting the majority of their US production of these models overseas. Both automakers have also announced investments to expand production further here to send more vehicles abroad. Even Honda has been shipping more models out of the country than it imported here. There is a concern this international strength could start slowing because the dollar is strengthening against other currencies, though it's too early to know what the actual effect of this could be, according to the WSJ. "Of course, we closely watch currency exchange, but we don't make changes in production or allocation based on temporary fluctuations in the exchange rate," Ford North American boss Joe Hinrichs told the newspaper. Related Video: News Source: The Wall Street Journal - sub. req.Image Credit: BMW Plants/Manufacturing BMW Ford Honda Mercedes-Benz exports us auto production

Will BMW-Designed Bobsled Give Team USA An Edge At The Sochi 2014 Winter Olympics? [UPDATE]

When we first reported on BMW's plans to develop a new bobsled for Team USA, the 2014 Winter Olympics were over two years away. Now the games are upon us and BMW's high-tech, carbon fiber sled is ready for competition in Sochi. When we first reported on BMW's plans to develop a new bobsled for Team USA, the 2014 Winter Olympics were over two years away. Now the games are upon us and BMW's high-tech, carbon fiber sled is ready for competition in Sochi. According to the automaker, BMW designers redeveloped the two-man bobsled from the ground up to replace a 20-year-old platform that has failed to produce Olympic gold. "BMW's process reevaluated the complete vehicle system: cowling aerodynamics and construction, chassis and steering geometries, athlete fitment and integration were all critical focal points," the automaker said in a statement. "Computer aided modeling, computational fluid dynamics (CFD), full size wind tunnel testing, on track testing, and athlete scannings were all tools in BMW's development approach." The United States has not won a gold medal in two-man bobsled since 1936. Only time will tell if BMW's contributions will give Team USA an edge at this year's Winter Olympic Games in Sochi. You can watch BMW's Team USA bobsled in action in the video above. UPDATE: Team USA bobsledders Steven Holcomb and Steven Langton won the bronze medal in two-man bobsled, snapping a 62-year medal drought in the event. MORE: American Steven Holcomb and Steve Langton take bronze, winning first two-man medal by a US sled since 1952. http://t.co/3lgynFj7z0 - AP Sports (@AP_Sports) February 17, 2014 BMW Translogic Videos bobsled