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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.

Mini Hardtop's next generation could be smaller, electric-only

Mini has started developing the fourth-generation Hardtop it will release in the early 2020s. Many aspects of the car aren't set in stone yet, but the company's chief executive revealed his team is considering making the hatchback smaller than the current model by offering it only as an electric car. The cheeky Hardtop has ballooned in size since the first-generation model arrived in 2000. The current, two-door variant of the car (pictured) is eight inches longer, two inches taller, and about 250 pounds heavier than the original BMW-developed hatchback. Company boss Bernd Koerber told British magazine Auto Express that he's pushing his team to make the next Mini small again. Going electric-only would allow engineers to get close to the original Hardtop's footprint. An electric motor is more compact than a comparable gasoline-powered engine, and the battery pack can be cleverly integrated in a part of the car that doesn't extend its length. Whether Mini will manage to integrate a bulky battery pack into the Hardtop while shaving 250 pounds remains to be seen. "I would love to see Mini move back to the essence of clever use of space. That means the outer proportions on the core Mini Hardtop could be reduced. I can see that happening," Koerber explained. He added shrinking the hatchback wouldn't make it less practical. Auto Express speculated Mini might sell the current, third-generation Hardtop alongside its replacement for several years to satisfy motorists not interested in going electric. This strategy will become increasingly common during the 2020s; the Fiat 500 will soldier on in Europe after the launch of its battery-powered successor, and Porsche confirmed it will manufacture the first- and second-generation variants of the Macan side by side to give customers exactly what they're looking for. Going electric-only wouldn't be the cheapest, easiest way to replace the Hardtop. The firm can't use the BMW-sourced platform that underpins the recently-released Cooper SE because it's too big, so it would need to develop a new architecture specifically for it. Engineers would also need to figure out how to develop an electric follow-up to the John Cooper Works-badged hot hatch. None of these problems are insurmountable, but they're expensive to solve, so Mini's executives are giving themselves time to weigh the pros and cons of reinventing the heritage-laced British icon yet again.

Mini ditches four-seat Countryman

Mini is walking away from the rear bucket seats in its Countryman crossover. MotoringFile.com reports that starting in 2013, the CUV will no longer offer just two seats in the second row. Originally, Mini was forced to offer the buckets due to National Highway Traffic Safety Administration rules governing the the minimum vehicle width for the allowance of three-wide seating. That rule was recently changed, which allowed Mini to offer the bench seat. Not surprisingly, few buyers have opted for the awkward bucket-and-rail configuration since. Moving forward, all Countryman models will also come with the vehicle's flat-load rear floor as well.
During our time with our long-term Countryman, we found the middle rail between the two buckets to be a bit gimmicky, especially given the fact that the cup holders were only large enough to accommodate a 12-ounce can.