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BMW looking to save billions with cost cuts

BMW is planning a fairly extensive overhaul in a bid to recoup some its annual costs, with CEO Norbert Reithofer (pictured above) aiming to save three to four billion euro ($4 to $5.4 billion) per year to help keep the company's profit margins between eight and 10 percent, while also maintaining investments in production expansion and new tech. BMW's profit margins sat at 9.4 percent in 2013.
According to Automotive News Europe, Reithofer is none too pleased about costs at Mini and on the 1 Series, although neither AN nor its source story, from Germany's Manager Magazin, elaborate on what steps could be taken to improve losses on either project. That makes it hard to figure out just where the fat will be trimmed from.
What may happen, though, is that BMW attempts to trim 100 million euros ($135 million) from its German labor costs each year; a solution hinted at a few weeks ago by Germany newspaper Muenchner Merkur. While a dramatic cost reduction, 100 million euros still doesn't begin to even approach the savings envisioned by Reithofer.

Hands on with the 2016 Mini Clubman

When the original Mini Clubman debuted, it was marketed as a bigger, more versatile version of the popular Hardtop. But over the years, the British brand's lineup has grown both in terms of vehicle size and number of models on offer, leaving the original car's formula by the wayside. There are now two five-door models, in the form of the Countryman and Hardtop, both of which offer more versatility than the four-and-a-half-door Clubman ever could. For 2016, Mini has transformed the Clubman, making it once again the brand's most versatile model. To familiarize ourselves with the new six-door model – yes, there really are six doors – ahead of the car's official debut in Frankfurt next week, Mini USA's product planning manager, Patrick McKenna, walked us through both the interior and exterior changes for the brand's newest model. As McKenna tells it, the BMW-owned company has gone to great lengths to make the Clubman more than just a long-wheelbase car with barn doors. There are changes both inside and out that not only serve to better distinguish this new model from the brand's other five-doors, but from anything else in Mini's lineup. Check out our chat with McKenna at the top of the page, and stay tuned for more Clubman news next week.

The Mini John Cooper Works Rally is set for Dakar

In recent years, there have been convincing Minis tailored for rallying: Dakar wins were accumulated with gusto. Now there is a new version for 2017, named the Mini John Cooper Works Rally. Its debut will be the 2017 Dakar Rally running through Bolivia, Paraguay, and Argentina. The new rally car has been built with experience gathered from rallying the earlier Mini All4 Racing, and it's based on the Countryman. Key areas reworked were the aerodynamics and the weight distribution to enable a lower center of gravity. As X-raid (Mini's motorsports partner) CEO Sven Quandt puts it: "The center of gravity has gone down substantially – we placed about 50 kilos [110 pounds] downwards by some 50 centimeters [19.7 inches] in the center of the car, which helps the handling and makes the car much more comfortable over all types of terrain, and aids the handling on a rally track with lots of corners." There is a new chassis frame, and the powertrain benefits from an updated engine mapping and thermal management. The interior has also been redone. Speaking of the powertrain, the Cooper Works Rally runs a 3.0-liter straight six from BMW's turbodiesel portfolio. In this guise, the TwinPower unit produces 340 horsepower at 3,250 rpm and a very respectable 590 lb ft of torque from 1,850 rpm. The retained ALL4 four-wheel-drive system has a six-speed SADEV sequential gearbox, together with lockable, oil-cooled Xtrac diffs with a central SADEV unit. The 2017 Dakar Rally runs from January 2-14. Related Video: