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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.

British company announces turn-key EV conversion kit for classic Mini

Swindon Powertrain unveiled a turn-key EV conversion kit that makes electrifying a Mini built between 1959 and 2000 relatively easy. It bridges the gap between the original model and the Cooper SE released earlier in 2020. Available in December 2020, the kit consists of an electric motor mounted on a modified Mini front subframe, and purpose-designed inner CV joint housings designed to work with regular-production half shafts. Swindon notes no modifications are required; installing the kit requires removing the original front subframe, probably selling the stock engine and the transmission in the local classifieds, and bolting the new subframe to the Mini's body. Rated at 107 continuous horsepower, but programmed to offer a peak output of 160 horsepower, the motor spins the front wheels via a single-speed transmission, which seemingly settles the debate over magic wand, direct, and remote gear changes. It offers more power than any four-cylinder fitted to the Mini by the factory. After tightening the subframe bolts, owners need to source additional powertrain components, like the battery pack, the motor controller, the on-board charger, and the DC-DC converter. All of these parts are available directly from Swindon Powertrains, or from a growing list of aftermarket vendors, but they're not included in the kit. Electric technology isn't cheap, and Swindon's kit is no exception. It's priced at GBP8,850 (about $11,500) before taxes and shipping enter the equation, meaning it's more expensive than rebuilding an original four-cylinder engine. Viewed in this light, electrification is better suited to some of the high-zoot custom builds (like the stunning Remastered available from David Brown Automotive) priced in the six digits than to a beater 1980s City model.

Mini lifts veil on refreshed Countryman in New York

When Mini introduced the Countryman in 2010, it emerged as the brand's first crossover, its first five-door model and its first to offer all-wheel drive. It also arrived mid-lifecycle in the last generation of Mini Cooper hatchback, with which it shares little more than a passing family resemblance. Now that the Anglo-Saxon automaker is moving on to its third generation of retro hatch, it's given the Countryman a bit of a refresh to keep it current.
Unveiled today at the New York Auto Show, the new Countryman incorporates some very minor cosmetic tweaks to the exterior - so minor, in fact, that you'd be hard pressed to tell one from the other even if viewed side by side. Some subtle enhancements have been implemented to the interior as well, where the large central speedometer remains where it was in the middle of the dashboard (unlike the new Cooper hatch that moves it to where you'd normally find the instrument cluster, behind the steering wheel). The rear seats, however, offer more adjustability.
Mini will offer the new Countryman worldwide in an array of powertrain configurations, ranging from the bare-bones Mini One Countryman with a 1.6-liter naturally-aspirated four offering just 98 horsepower all the way up to the twin-turbo John Cooper Works with 218 hp - North American customers will get the latter, but not the former. The mid-range Cooper S has been enhanced by seven horses to deliver 190 hp, while overseas-only diesel models range from 90 hp to 143. Buyers will be able to choose between a six-speed manual or automatic and front-or all-wheel drive. There are also some new colors on offer and a host of optional equipment, all of which you can read about in the press release below.