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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.

2016 Mini Clubman First Drive [w/video] [UPDATE]

UPDATE: After playing with the newly launched Clubman configurator, we've revised the as-tested estimate to what we think is a more accurate $40,250, based on how our Swedish tester was equipped. Mini had a good idea when it introduced the last-generation Clubman, offering a slightly bigger, more versatile vehicle, with its own unique styling traits. Sounds good, right? Well, as it turned out, that wasn't necessarily all for the best, and not because there was any problem with the car itself. Mini's fleshed out model range, which now includes both the all-wheel-drive, four-door Countryman and the new four-door Hardtop has rendered the original Clubman idea rather obsolete. Enter the new Clubman. Gone is its awkward club door, and in its place are an extra pair of real, traditional doors. But even more than changes to its body, Mini has taken the original Clubman idea – to build a more versatile version of the beloved Hardtop – to its logical extreme, going larger. More importantly, this 2016 model represents a more premium, comfortable direction for the Mini brand. But don't worry, loyalists, this is still very much a Mini. The 2016 Clubman is the longest vehicle Mini has ever made. As was the case with the previous Clubman, this new model rides on a longer wheelbase than the Hardtop's. The 105.1-inch span is arguably more maxi than mini, offering buyers anywhere from 2.9 to 6.9 inches of extra space between the axles. It also makes the Clubman the longest vehicle Mini has ever made. But at 168.3 inches in length, this new model is still significantly shorter than a compact wagon like the 179.6-inch Volkswagen Golf SportWagen, or even another C-segment hatch, like the five-door variants of the Ford Focus (171.6 inches) and Mazda3 (180.3 inches). On top of the extra length, Mini stretched the body by a full three inches, while the track has been increased by 2.4 inches at both ends of the car. Taken as a whole, the Clubman is exceptionally roomy, considering its footprint. The suspension, a multi-link rear with front struts, is softer than that of a Mini Hardtop, but that's not saying a lot – handling is significantly sharper than in the vehicles listed above. And we're betting it will stand out against the brand's intended targets – a list that ranges from the Volkswagen Golf to the Mercedes-Benz A-Class. Feedback through the wheel is on the low side for something wearing a Mini badge.

2015 Mini John Cooper Works Hardtop First Drive [w/video]

In its previous iteration, the Mini John Cooper Works three-door was a bad little mother. It looked like an engorged puffer fish facing down a shark, sounded like squadron of hornets with even the tiniest provocation of the throttle, and turned corners like it was angry at them. It was hard riding and ill mannered in all sorts of daily driving situations, but supremely satisfying when used in the all-out-attack mode for which it was designed. I dug every minute I spent in one, when really concentrating on driving. (As a commuter or passenger, not so much.) It only took fifteen minutes of driving on the lilting, tree-lined roads outside of New Haven, CT, to realize that the 2015 Mini JCW Hardtop was a lot less pissed off. And with more power, refined ride quality, a better interior, and an available automatic transmission, a lot more suitable for a wide variety of drivers. The little hellion has matured. On that grownup tip, the first of the many '15 JCWs I sampled was fitted with a six-speed automatic transmission. Cue collective shocked gasp. I'll forgive you if you didn't know an auto was going to be available equipment on the JCW, as Mini product planners had to remind me that it had been offered for the first time on the model-year 2013 car. Even then, the manual trans saw an impressive 75-percent take rate, so it's not as if many of the auto-shifters made it to the street. That could change in this new generation, where the 6AT acquits itself quite well. Wheel-mounted paddles offer near immediate response to requested shifts, and programming for the sport setting causes gears to be held up to the top of the tach. The manual is far more engaging, even if the automatic is quicker than the human hand. The six-speed Getrag manual transmission is still the better option, even the car is two-tenths of a second slower to 60 miles per hour with it (6.1 vs. 5.9 seconds), and less fuel efficient in the city (23 vs. 25 miles per gallon). The manual uses a long-levered shifter that still feels positive going between gates, and a short-travel clutch that's got nice weight and an easy catch point. It also offers defeatable rev matching, smoothing out even very aggro downshifts. Mini measures the manual as slower than the auto, but I had a lot more fun using it to harness the increased power of the 2.0-liter turbo four-cylinder engine.