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BMW profit of $2.7B is down as automaker invests to keep luxury lead

Despite selling 6.6-percent more vehicles - a record by volume - and posting higher revenues in the second quarter of 2013, BMW Group's profit of 2.07 million euros ($2.75 billion) is down 8.8 percent from last year. Investments in new technology (e.g. the new i3) and personnel, in addition to a competitive market, are to blame, BMW states. But the automaker remains committed to its fiscal targets for 2013, which, Chairman of the Board of Management of BMW AG, Norbert Reithofer, says will be "on a similar scale to 2012."
The BMW brand's sales performance in the first half of the year, which increased by 7.7 percent to 804,258 vehicles delivered, was good enough for it to maintain its lead in the luxury market, narrowly beating Audi, which delivered 780,510 vehicles, Automotive News reports. Mercedes-Benz delivered 694,433 vehicles to cement third place.

Judge to approve settlement of Mini CVT lawsuits

BMW has agreed to settle a number of class-action lawsuits out of court. The suits stem from drivetrain issues on the 2001 to 2006 R50 Mini Cooper - in particular, its continuously variable transmission. The transmission was known to fail, often without warning on otherwise healthy and well-maintained vehicles. This wasn't the only major issue to afflict the original BMW-era Mini models.
According to legal site Topclassactions.com, the suits alleged that BMW knowingly hid the defects in the CVT from customers while informing dealers of the issue. The first suit was filed in 2011, while four additional suits have followed. Now, BMW has reportedly settled, offering to reimburse 1,200 owners that needed repairs within eight years or 150,000 miles of their purchase. Repair prices for the transmission range from $6,000 to $9,000.
Under the agreement, BMW will also offer up to $4,100 to members of the suit that had fixes performed at a third-party shop, while owners who sold their cars at a loss due to the issues are slated to receive up to $2,000. Finally, owners who are part of the suit will be warrantied for a further eight years and 150,000 miles.

Mini recalls select 2015 Cooper Hardtops over seats

The new Mini Cooper Hardtop only recently reached the market, but already BMW is having to recall a limited number of the hatchbacks. The problem revolves around the front seats, whose adjustment mechanism may not fully lock into place. In the event of an accident, that could lead to the seatback folding unexpectedly, which carries with it an increased risk of injury for the driver and front passenger. The issue only affects the new 2015 Mini Cooper, specifically two-door Hardtop models manufactured in the short window between August 12 and September 2, 2014. That amounts to only 846 units, according to the notice posted by the National Highway Traffic Safety Administration, which you can read below. Owners of the affected vehicles will be notified to bring their Minis into their local dealership to have the seatback adjustment mechanisms realligned and tightened to remedy the problem. RECALL Subject : Seatback may Fold in Rear Impact Crash Report Receipt Date: NOV 10, 2014 NHTSA Campaign Number: 14V721000 Component(s): SEATS Potential Number of Units Affected: 846 Manufacturer: BMW of North America, LLC SUMMARY: BMW of North America, LLC (BMW) is recalling certain model year 2015 MINI Cooper Hardtop 2 Door vehicles manufactured August 12, 2014, to September 2, 2014. In the affected vehicles, the driver and front passenger seatback adjustment mechanism may not be fully engaged. CONSEQUENCE: If the seatback adjustment mechanism is not fully engaged, the seatback may fold during a rear impact collision, increasing the risk of injury to the seat occupant. REMEDY: MINI will notify owners, and dealers will re-align and re-tighten the seatback adjustment mechanisms, free of charge. The recall is expected to begin in December 2014. Owners can contact MINI customer service at 1-866-825-1525. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.