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BMW halts delivery of several M cars for rear differential problem

BMW issued a stop-delivery order on 202 cars this week. The affected vehicles include the M2, M3, M4, M5, and 5 and 6 Series models. They were produced between May 12 and July 4, 2016. According to a service bulletin by BMW, which was published on Bimmerpost, the affected vehicles will need a new rear differential. The bulletin doesn't state what's wrong with the rear differentials, and a BMW spokesman did not have immediate comment on the issue. BMW will update the bulletin with more details on warranty information and repair instructions as they become available. Owners can contact BMW to find out if they're affected. BMW has issued several recalls this year. Just last month, the automaker recalled more than 200,000 SUVs for lower child-seat anchor bars, as well as potential damage and failure to the universal join on the front driveshaft. In February, BMW recalled 840,000 vehicles to replace faulty Takata airbags, while 6,110 units of the 2016 7 Series were added to the same recall in April. Related Video: News Source: BimmerpostImage Credit: BMW Recalls BMW Coupe Performance Sedan bmw m4 bmw m2 service bulletin

BMW reveals Concept Compact Sedan in Guangzhou

While our eyes were fixed on Los Angeles, BMW turned its attention to Guangzhou, China, where the German automaker unveiled the Concept Compact Sedan. The show car envisions a Bavarian rival to the likes of the Mercedes-Benz CLA-Class and Audi A3 sedan. Munich released little in the way of technical details. Instead, the Concept Compact Sedan is all about the design. Relative to its form, the show car rides on a long wheelbase, with the wheels pushed to the corners, and a greenhouse set back behind a long hood. The details are distinctly Bimmer, from the signature double-kidney grille to the Hofmeister kink in the C-pillar. The horizontal lines of the front and rear fascias are designed to maximize the vehicle's visual width, and the muscular design integrates touch-sensitive door handles below the swage line for a cleaner look. All that is rendered in liquid metal bronze paint, offset by polished aluminum brightwork and 20-inch split-spoke alloys. Geared towards the "life of a generation of youth in China," the interior is designed around the driver, but also seeks to maximize rear-seat space despite the vehicle's compact footprint. The horizontal treatment continues inside to give the impression of space, with upscale materials like three-tone Nappa leather, open-pore wood, and brushed aluminum trim with orange accents and ambient lighting. All the auxiliary surfaces are controlled by touch panels on the steering wheel, center stack, center console, and door handles. There's a panoramic roof, a head-up display for the driver, and an 8.8-inch screen in the dashboard. The sum total is a compelling preview of what a four-door addition to the 1 Series and 2 Series could look like. And to our eyes, it looks like it would be just as home on American roads as it would be in China, Europe, or anywhere else for that matter. Check it out in the high-res image gallery above and the details in the press release below. BMW Concept Compact Sedan. Sporty, elegant, exclusive – the perfect statement-maker. 20.11.2015 Munich/Guangzhou. The BMW Group has chosen Auto Guangzhou 2015, one of the largest international motor shows in China, to present a very special new development to the global public: the company's vision of a four-door sedan for the compact segment. "The BMW Concept Compact Sedan reveals the potential we see in a compact sedan," says Adrian van Hooydonk, Senior Vice President BMW Group Design.

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.