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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 JCW GP to be hatchback only, no 'Ring record attempt in sight

The 2013 Mini John Cooper Works GP is dropping weight and lowering its lap times, but one thing it won't be losing is its flat roof. Like the original JCW GP package, Evo says that despite the fact that sportier Mini Coupes have been caught testing, the new GP will only be offered in the three-door Cooper hatchback body style. And that's perfectly fine with us.
Evo spoke with GP development chief Jorg Weidinger who said that as a part of the car's history, "It was a hatch, it is a hatch and it should stay a hatch." Weidinger also said that Mini is not planning to set any Nürburgring records with the new JCW GP even though earlier reports indicate that the car is a full 20 seconds faster around the 'Ring than its 2006 predecessor.
The new Mini John Cooper Works GP weighs 121 pounds less than the John Cooper Works Hardtop, offers a fully adjustable coil-over suspension and it will have a starting price of $39,950, (including $700 for destination) when it goes on sale later this year.

Mini Art Beat is a loud, driving social media billboard

Video billboards are nothing new, but a video on a moving car that's blaring music? Now that's something that will catch your attention - especially if you're driving alongside it in the streets of London.
That's the exact intent of Mini's new Art Beat, a Cooper Countryman turned marketing device that is custom-fitted with a staggering 48,000 LEDs. On its nightly drives through the city, the compact crossover showcases brightly colored videos, graphics and animations contributed by people around the world via social media. The Mini Space Blog describes the Art Beat as the "most vibrant and customizable NOT NORMAL ride you'll ever lay eyes on."