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BMW warns profits will fall, plans $13.6 billion in cost-cutting

FRANKFURT, Germany — BMW said Wednesday that profits in 2019 will be "well below" last year's, and it will cut 12 billion euros ($13.6 billion) in costs by the end of 2022 to offset spending on new technology. The company said profits would be eroded by higher raw materials prices, the costs of compliance with tougher emissions requirements and unfavorable shifts in currency exchange rates. The Munich-based automaker also faces increased uncertainty due to international trade conflicts that could lead to higher tariffs. "Depending on how conditions develop, our guidance may be subject to additional risks; in particular, the risk of a no-deal Brexit and ongoing developments in international trade policy," said Chief Financial Officer Nicolas Peter. The company forecast a profit margin of 6 to 8 percent for its automotive business, short of the long-term strategic target of 8 to 10 percent, which it said still "remains the ambition" for the company if given "a stable business environment." BMW said it had no plans for layoffs even as it outlined cost saving measures that include dropping half of its engine variants as it seeks to reduce product complexity. The BMW, Mini and Rolls-Royce brands are to get a single sales division. Peter said that given the headwinds to earnings, "we began to introduce countermeasures at an early stage and have taken a number of far-reaching decisions." The company said the measures were needed "to offset the ongoing high level of upfront expenditure required to embrace the mobility of the future." Automakers around the world have faced heavy up-front costs for technology expected to change how people get from one place to another in the next decade. Those include electric cars and renting cars through smartphone apps. Yet the returns from such investments remain uncertain and auto companies face competition from tech firms such as Uber and Waymo. BMW made 7.2 billion euros ($8.2 billion) in net profit last year, down 17 percent from 2017, when it booked a gain of $1 billion from U.S. tax changes. The company faced headwinds from increased tariffs on vehicles exported to China from the United States. It also suffered from turmoil on the German auto market when companies faced bottlenecks getting cars certified for new emissions rules. BMW faces uncertainty from U.S.-China trade tensions that could result in new tariffs if talks do not result in an agreement. U.S.

Mini John Cooper Works Convertible gets a belated show debut

Mini originally introduced the new John Cooper Works Convertible way back in January. But since the German-owned British outfit wasn't attending the Detroit Auto Show, we were stuck waiting to see it until today at the 2016 New York Auto Show. The JCW Convertible is something of an anomaly, lacking any real competitors, but that doesn't make it any less enticing. Like the standard JCW Hardtop, the 2.0-liter, turbocharged four-cylinder is good for 228 horsepower and 236 pound-feet of torque. The cab will hit 60 in 6.4 seconds, which is slower than perhaps its closest competitor, the Mazda MX-5. The trade off here, of course, is a lot more space, style, and optional extras than the cozy MX-5. Mini's hugely diverse options catalog is present and accounted for with the JCW Convertible, giving interested consumers a degree of customization that every automaker short of Porsche and hand-built exotic brands will have trouble matching. Of course, it comes with a frankly absurd sticker price – Mini's top-end droptop starts at $36,450, including the $850 destination charge. That figure swells fast. Expect at least $40,000 for a decently equipped example. You can play with the JCW Convertible's configurator, or just check out our first round of live images of Mini's latest high-performance model. Related Video: EXTREME DRIVING FUN, INTENSIVE OPEN-AIR PLEASURE: INTRODUCING THE NEW MINI JOHN COOPER WORKS CONVERTIBLE Woodcliff Lake, NJ – January 14, 2016... When passion for motor racing is the driving force and intense open-air pleasure the goal, the new MINI John Cooper Works Convertible takes the ideal line from the word go. The second John Cooper Works model of the latest generation combines engine and suspension technology optimized for use on the race track with distinctive design and equipment features as well as the extensively refined qualities of the new MINI Convertible. This lends even greater fascination to the vehicle concept of an open-top 4-seater with outstandingly sporty performance properties that is still unique in the small car segment. The latest version of the MINI John Cooper Works Convertible offers the most exclusive way of enjoying extreme driving fun. With its spontaneous power delivery and highly emotional sound, the most powerful engine in the British brand's portfolio with 228 bhp is strikingly impressive. The fully electrically operated textile top is particularly low-noise, open or closing in just 18 seconds at the press of a button.

Mini lineup could expand to include up to 10 models, still no hope for Rocketman

During an event in Ponce, Puerto Rico last week where Mini introduced members of the media to the 2013 Paceman and John Cooper Works GP, product planners discussed that the brand's lineup could expand to eventually include up to 10 bodystyles. Currently, the Mini range consists of seven models: the Hardtop, Clubman, Convertible, Countryman, Coupe, Roadster and Paceman.
Speaking to members of the media, David Duncan, Mini USA sales manager, said that these new models could fall into a range of niches - "any segment that makes sense for a small car." No specific vehicle classes were discussed, but Duncan stated that the possibilities are endless, "as long as we're the smallest player in any segment."
Well, nearly endless. We've been hoping that Mini would re-think its decision to nix plans to create a vehicle smaller than the Hardtop - a notion previewed by the excellent Rocketman concept (shown above) from the 2011 Geneva Motor Show - but the automaker once again stated that this is absolutely off the table. In order to create a vehicle of the Rocketman's size, a completely new platform would have to be engineered (that's expensive), and while Mini has looked into acquiring existing architecture from another brand, parent company BMW has reportedly put the kibosh on such an act. If a Rocketman is ever to be born, BMW/Mini will do it on its own, and right now, that simply isn't in the cards.