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BMW's Connected Drive feature vulnerable to hackers

BMW is working to fix a cyber-security flaw that has left 2.2 million vehicles worldwide vulnerable to hackers. Cars equipped with the automaker's Connected Drive remote-services system are affected, according to the German Automobile Association (ADAC), which first discovered the problem. Researchers found they could lock and unlock car doors by mimicking mobile communications and sending phony signals to a SIM card installed in affected vehicles. An attack could be launched "within minutes" of accessing the system without the perpetrators leaving a trace, according to their report, in part because once they had gained access to the network, the communications were not secure. In response to the security gap, BMW says it has been upgrading software via over-the-air updates over the past week, so no visits to dealerships are needed to remedy the security hole. In fact, owners of affected cars may not have even noticed the updates taking place. The problem affects BMW, Rolls-Royce and MINI vehicles equipped with Connected Drive since 2010. Flaws were first reported to BMW last year by ADAC, which is the country's equivalent of AAA. ADAC says it withheld a public announcement until the car company could address the problem. While BMW has pushed the software patch to most affected vehicles, the organization said it's possible some at cars in the United States had not yet been updated. BMW did not respond to a request for comment Monday. In a written statement, the automaker said it knows of no real-world breaches. 2015 Off To Dubious Start The hack could raise the eyebrows of industry leaders: Cars are now the equivalent of mobile computers and cyber-security experts have been warning that the auto industry has been slow to close its security holes. BMW's breach marks the second time in 2015 that researchers have found a popular automotive feature with little or no security precautions. Last month, experts said a popular device made by Progressive Insurance that allows motorists to track their driving habits contained no security whatsoever. Like the Connected Drive smart-phone app, many automotive components and infotainment features were conceived and produced at a time when industry executives never considered the possibility someone might want to hack into them. But increased connectivity brings increased risk. Going forward, BMW says its Connected Drive features will now operate by using encrypted communications via the HTTPS protocol.

Mini considering sports car replacement for Coupe and Roadster?

The next-generation Mini lineup could see some big changes, according to a report from Australian site CarSales. Starting with the debut of the third-generation Mini Hardtop at this year's Los Angeles Auto Show, we could see a regular string of Minis on the stages of the world. But the bodystyles we see might not be what we've grown used to.
A four-door sedan could eventually arrive, while the polarizing Mini Coupe and Roadster are likely to be replaced by a dedicated sports car with unique sheetmetal and uprated engines. While the rest of the line is switching to three-cylinder, turbocharged engines, the new sports car, which will be available in both soft- and hardtop variants, will use some version of BMW's 2.0-liter, turbocharged four-cylinder. The Aussie site also claims that the interior treatment could take inspiration from the Mini Vision concept car, while showing off the know-how BMW gained when working carbon fiber into the i3. The new model(s) would likely arrive in late 2015 or early 2016.
According to CarSales, we'll see the three-door Hardtop at the 2013 LA Show, along with a five-door hatch that is different from the Clubman at the 2014 Paris show. The Clubman, meanwhile, will arrive in Geneva in 2015, while the Convertible is slated for later that same year. The current Countryman and Paceman are expected to be around for some time, before being joined by an MPV. Eventually, the larger Minis will share their architecture with the BMW X1.

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.