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BMW considering North American engine plant?

BMW may be set to expand its US operations with a new engine plant, Bloomberg reports. The Bavarian automaker already has its Spartanburg, SC factory which builds the company's X3, X5 and X6 crossovers. According to the story, Mexico is also under consideration for the BMW engine factory, with the report claiming a final decision will be made in 2014.
"Establishing local motor manufacturing abroad is more complex than assembling cars, but it's a logical step for them to eventually start making engines in markets where they're expanding vehicle production," Juergen Pieper, an analyst for Bankhaus Metzler tells Bloomberg. Building engines in the US or Mexico would save BMW from having to ship engines for some of its most popular models across the Atlantic.
BMW, for its part, hasn't said anything concrete. Spokesman Mathias Schmidt is quoted in the story saying, "As part of our long-term growth strategy, we're frequently looking at different countries for possible locations of future production facilities. No decisions have been made yet, though, for an additional plant."

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

BMW celebrates its awesome '80s M535i

BMW recently celebrated the 30th anniversary of the M5 with a very limited, special edition of the super sedan. And even before the original version was transporting German executives at ludicrous speeds down the Autobahn, the folks in the M department tried their hand at improving the 5 Series with the M535i. Only offered in 1980 and 1981, the company made just 1,650 of these top-spec models, but they sowed the seeds for the future. In this video looking back at the M535i, you really see the automaker from a completely different era. As an outgrowth of the company's touring car racing efforts, the special model packs a 3.5-liter inline-six rated at 218 horsepower, a powertrain capable of accelerating the M535i to 62 miles per hour in 7.5 seconds via a dogleg five-speed gearbox. This take on the 5 Series is also a visual treat because it mixes the standard version's skinny A-pillar and thick C-pillar styling with some era-specific upgrades. The corduroy-covered Recaro seats and groovy multicolor stripes down the side, on the air dam and at the rear are especially fun touches. While the video's announcer is a bit dull, there's nothing boring about this rare, vintage BMW. Take a trip back in time with this clip, it's a nice bookend to the Petrolicious E28 5 Series family video we showed you yesterday. News Source: BMW via YouTube BMW Automotive History Performance Classics Videos Sedan