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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.

Mini Cooper SE Prototype First Drive Review | This electric hatch is a suburban belter

MUNICH, Germany — A battery-electric Mini SE? Haven't we been here before? Well, yes: A decade ago, as part of its "i Project," BMW conducted a worldwide field trial of some 750 lithium-ion battery equipped two-door Mini Coopers. It was launched at the 2008 L.A. Show, and the lithium-ion battery pack took up most of the space normally occupied by the rear seats. Nevertheless, interest in the 450 lease vehicles offered in the U.S. (at $850 a month) was strong, with more demand than cars available. One result of the 2008-2011 trial was parent company BMW learned that the average owner of a two-door Mini drives about 25 miles a day, and the company is hoping the battery Mini will be an ideal (sub)urban-run-around for two- or three-car families. Now BMW is about to launch a production Mini EV (based on the two-door model, but with the full complement of four seats), which goes on sale at the end of the year. This will join the Mini Countryman All4 plug-in hybrid in the electrified Mini stable, but while the Countryman has an EV range of about 12 miles, this battery Mini will travel around 120 miles on a single charge. The reason we can't be too definite about the new Mini's capabilities is that BMW isn't allowed to "advertise" the car this far in front of its on-sale date. We caught up with the prototype model, mummified in camouflage tape, at an off-the-road driving event held at BMW's Munich driving center on the former military air base of Furstenfeldbruck, now known as Maisach. The drivetrain is based on the middle model of BMW's i3 range, the i3S, with its 135 kilowatt/181 horsepower motor and 94 amp-hour, 33 kilowatt hour battery. The battery is a 96-cell lithium-ion unit from Chinese supplier CATL instead of BMW's previous supplier, Samsung, and it weights 441 pounds. Unlike the team-built, mainly carbon-fiber i3, the Mini is a standard three-door model that runs down the production line in Oxford, with a metal subframe that houses the electric motor, inverter, transformers, and control electronics so they can be slotted into place like a conventional driveline. We can extrapolate a few things about the Mini from the BMW i3S. As well as its working range of 120 miles, the i3S has a top speed of 100 mph and will accelerate from 0-62 mph in 7.7 seconds. With over 360 pounds more to pull about, the 2,998-pound Mini EV will be slower, with less range, especially if used in cold conditions.

This classic electric Mini costs $100,000, but just look at it

We all love the original Mini, so when a British company decided to develop an electric version of it using a restored original body, we took notice. Enter the Swind E Classic Mini. Electric cars are allowed to have a soul, and this one is just as cute as a Mini with a little gas motor. Swind, a UK-based tech and engineering company, didn't just produce a half-baked version of an electric Mini. The powertrain is a bespoke, in-house design developed by the company's own engineers. The body has contemporary corrosion protection to make sure it doesn't rot like an original from the 1960s. Also, new brake and suspension parts ensure it'll feel relatively modern to drive. Don't expect any mind-blowing specs and numbers from the little EV, though. It uses a 24 kWh lithium ion battery pack and the electric motor produces 110 horsepower. Zero to 60 mph is achieved in 9.2 seconds. That's not impressive on today's world, bu is still quicker than this Mini would have been with its original gas engine. Top speed is 80 mph, and range is rated at an impressive 125 miles. That's plenty for this little city runabout — road trips won't be this Mini's job anyway, especially if you have to run it near top speed just to keep up with traffic. Swind says it'll get to a full charge in four hours via its fast charging capability. Weight is kept to only 1,587 pounds, so this will be one of the lightest electric cars on the road. The benefits of modernizing and electrifying the Mini help out in other areas, too. You can check option boxes for an infotainment system with navigation. USB ports come standard, as do heated leather seats. Curiously, air conditioning is an option. If you prefer no power steering, that's possible; performance tuning packs are available, but there's no explanation for what that entails. There's more space in the boot for stuff with the gas tank removed, and weight distribution is improved at a 57/43 split (it was 68/32 originally). Now we move onto the less desirable portion of this Mini: The price. Converted from pounds sterling, this Mini goes for $100,970. You can buy a whole lot of car for that money, or you can have an electric Mini. At least Swind is really building it, unlike the one-off shown by Mini at the NY Auto Show last year. Production is limited to only 100 cars that all come with a one-year unlimited-mile warranty.

Mini John Cooper Works GP spied with wide body, big wing

The Mini John Cooper Works GP was just announced to have over 300 horsepower, and we got an early glimpse at it with teaser images. And now one of our spy photographers caught the car with very thin camouflage. The spy photos reveal that the Mini GP is sticking fairly close to the Frankfurt concept, but toning everything down a bit. At the front, the Mini GP clearly is using the current John Cooper Works hardtop front bumper, but it does have deep chin spoiler additions that allude to the GP concept's massive splitter. The grille has been revised, and the gloss black lower sections are now made of a matte black mesh design. The slot in the middle could have red accents on each side like the red stripe on the concept. The front spoiler blends right in to the new extra-wide fender flares. While the fender extensions don't protrude as far as on the concept, they're otherwise very similar in how they sweep backward at the tops and stand away from the body to allow air to flow through. Something else noticeable from the side are the enormous front brakes. The rotors nearly fill up the wheels, and the calipers look really beefy. The five-spoke wheels on this prototype will be replaced by GP-signature four-spoke wheels as revealed by teaser shots. The back of the GP looks about how we would imagine it. The split rear wing is roughly the same shape as the concept's, but a little narrower. The bumper has a big diffuser area that doesn't necessarily look functional, but should at least look cool. The rear exhaust tips look bigger than normal Mini John Cooper Works models. The Mini GP will go into production in 2020. Only 3,000 examples will be built. We suspect the GP will use the same turbocharged 2.0-liter four-cylinder engine as the BMW X2 35i, which makes 306 horsepower and 332 pound-feet of torque. Coupled with weight savings, possibly involving a rear seat deletion, and upgraded suspension, and this should be a shockingly fast Mini. Related Video:

Mini John Cooper Works GP will have over 300 horsepower

The Mini John Cooper Works GP concept from the 2017 Frankfurt Motor Show was one extreme-looking vehicle, and we now know it's because the real one will, in fact, be really extreme. The company announced that the production car will be the most powerful Mini with over 300 horsepower. In fact, it will be the most powerful Mini by a large margin, as the most potent models so far have only made 228 horsepower. And of course, it will be within striking distance of equally widened and winged cars such as the Civic Type R and Focus RS. Exact numbers haven't been revealed yet, but we wouldn't be surprised if it uses the same turbo 2.0-liter four-cylinder from the BMW X2 M35i, which makes 306 horsepower and 332 pound-feet of torque. In fact, the engine would be ideal, since the X2 is front-drive based and shares underpinnings and less-powerful engines with existing Mini products. The X2 M35i is also all-wheel-drive, which naturally brings up the idea of the GP also powering all four wheels, but Mini might choose to stay with front drive to reduce complexity and weight. Sticking with front drive would also mean that Mini could challenge the Civic Type R's record Nurburgring lap. It looks like the spirit of the concept's design will make it to production, too. The teaser images Mini released show a pretty wild looking split wing that's just a bit narrower and missing some of the concept's extraneous fins. We can also just make out fat fender flares, a big rear diffuser, and the GP's trademark four-spoke wheels. The Mini John Cooper Works GP will go into production in 2020, and Mini will only be building 3,000 examples. That's a low number, but it is more than the 2,000 units of the two previous GP generations. And considering the high output and low production, the GP will undoubtedly be a pricey hot hatch. Related Video:

Mini 60 Years Edition celebrates six decades since the original hit the streets

The original Mini launched in 1959, making this year the car's 60th anniversary. To celebrate, Mini is offering a special Mini 60 Years Edition car for the 2019 model year. Mini did a pretty awesome photo shoot for this limited-edition car, showing us how big the Mini is now compared to what it used to be in 1959. That might not have been the point, but man is it interesting to see the two chugging along next to each other. You can order the 60 Years Edition with either the three-door or five-door Mini — the larger Clubman and Countryman will not be getting this treatment. As for the changes from Mini, it's mostly aesthetic. The standard color is a British racing green, but you could choose among four other non-green colors, too. Mini will paint the roof either white or black, and the same goes for the exterior mirror caps. Plenty of stripes are already available for Minis, but this special edition has unique hood stripes — the 60 Years logo appears on just the left-hand hood stripe. That's just the beginning when it comes to anniversary stickers and logos. You'll see the designation on the door sills, interior trim, front headrests, steering wheel, and the logo is even projected onto the ground by LED light upon opening the door. Mini 60 Years Edition View 33 Photos A bunch of equipment is made standard in these 60 Year cars for a bit more luxury. Full LED lighting front and back comes with all of them. The interior trim is done in an exclusive dark maroon color — the sports seats and leather steering wheel will also be standard equipment. In the U.S. you'll be able to get either the normal Cooper or the Cooper S with this special edition package. This means either the 1.5-liter turbo or 2.0-liter turbo will be up for grabs with your 60 Years Edition Mini. These particular cars will be available in March this year, but Mini doesn't spell out pricing nor production numbers for them. Since the changes aren't necessarily drastic, we wouldn't expect an unruly price, but expect to pony up a bit more for the privilege of owning one of these. Related video: Featured Gallery Mini 60 Years Edition and original Mini View 58 Photos MINI Hatchback

Major Alexa deal will bring Amazon services into more cars

Amazon and its personal assistance service Alexa are partnering with HERE Technologies to create a new connected mobility service powerhouse. Alexa will integrate with HERE's navigation and location services to offer what the two companies are calling a "true voice-first-navigation experience." Alexa will come pre-integrated with HERE navigation on-demand, which the automakers can then enable, which should help cut down on development time. One of the biggest features from this partnership is how directions could be offered and delivered using HERE's Open Location Platform (OLP). Currently, the OLP uses data from several car manufacturers to provide insights into real-time location and traffic. But on Alexa, this could be used to provide directional context. For example, Alexa could say, "Turn right after [such-and-such a building]" rather than just, "Turn right." Amazon has been testing the automotive waters throughout the past decade. Its home-based Alexa-enabled devices are already offered with connections to several manufacturers. To various degrees of integration, it can already pair with Ford, Genesis, Toyota, Lexus, Hyundai and BMW vehicles. At the end of 2018, Amazon took things a step further when it introduced the Echo Auto, a Bluetooth-connected Alexa assistant device that can be physically kept in a car. Currently only available by invitation (its production and distribution have been delayed), the $25 device is essentially a voice service that works together with smartphones and connects to a car's speakers. Users can command it to do a variety of things, including playing music, setting navigation, opening the garage door, finding local stores, making calls, setting reminders, and thousands of other "skills." According to The Verge, nearly 1 million people have already ordered the device. Some (well, probably few) may know HERE Technologies from its maps on Windows Phones. We all know how that turned out, though. Today, HERE has expanded into a multi-function suite that is available in multiple mediums, including many automotive applications. HERE Automotive's connected vehicle services include real-time traffic, parking, weather, fuel prices, hazard warnings, traffic sign integration, and even EV charging stations. These all incorporate and extend the use of HERE's location and tracking programming. HERE is already partnered with BMW, Audi, Daimler, Intel, Mobileye, NVIDIA, and has investments from Bosch, Continental and Pioneer.

BMW sold 2.49 million BMW, Mini and Rolls-Royce vehicles in 2018

FRANKFURT — German carmaker BMW on Tuesday said it achieved record sales of 2.49 million BMW, Mini and Rolls-Royce vehicles last year. "BMW Group achieved record sales in 2018. 2.49 million vehicles mean the BMW Group is the world's leading premium automotive company for the 15th year running," Chief Executive Harald Krueger said. In 2017, BMW Group sold 2.46 million vehicles. Daimler has not yet released annual sales figures for Mercedes-Benz passenger cars, so it remains unclear whether BMW brand overtook Mercedes-Benz in terms of sales in 2018. Sales of BMW, Mini and Rolls-Royce cars were higher than Mercedes-Benz in 2017.

Mini John Cooper Works GP coming in 2020, special editions in the meantime

Every once in a while, Mini releases a monster of a Cooper with the designation of GP. It created one in 2006, and another in 2013, and they both featured less weight, more power, a big rear wing and no rear seat. They were the hardest-core of hardcore Minis. And now a third GP is coming in 2020. The big little car brand announced the GP will return, but not much else. The only other detail shared was that it will have styling inspired by the Mini John Cooper Works GP concept shown at the 2017 Frankfurt Motor Show. As seen above, it was a thoroughly over-the-top interpretation of the GP with huge fender flares featuring big trailing fins. The rear wing was also enlarged to near comic proportions. We'll see if Mini commits to the gonzo styling, or if it dials things way back. 2019 Mini John Cooper Works Knights Edition View 18 Photos To supplement the announcement of this new Mini, the company also announced a few special-edition Mini models on sale now or very soon. The most interesting of the three newly announced Minis is the Mini John Cooper Works Knights Edition. It's a Mini JCW Hardtop in black with a silver roof, mirrors and hood stripes. On the sides are silver and red stripes, and all around the car is black trim. The door handles, badging and grille surround are all painted black. It's a menacing-looking car, or at least as menacing as a Mini can look. It also gets the remote-controlled exhaust flap to go from mild to wild exhaust note at a push of the button. This model goes on sale in the first quarter of 2019. Next month, you'll be able to get your hands on the Mini Countryman Yin Yang Edition. This is a basic Mini Cooper S Countryman in either black or white, with the other color for the roof and hood stripes. It also gets a black grille and black light trim. Then there's the Mini Clubman Starlight Edition. This is a Cooper S Clubman in dark blue with a silver roof, mirrors and hood stripes. It's on sale now. Both special editions also throw in some luggage accessories as standard equipment. Related Video:

British automakers take costly precautions as Brexit 'no deal' fears grow

LONDON — Carmakers in Britain have triggered some Brexit contingency plans, such as certifying models in the EU, and are working on redrawing production schedules and stockpiling more parts to defend against any loss of unfettered trade after Brexit. The moves are aimed at ensuring plants, which rely on the just-in-time delivery of tens of thousands of components, can keep operating after Brexit on March 29, but will add costs and bureaucracy which could risk their long-term viability. London and Brussels hope to agree a deal by the end of the year to avoid tariffs and trade barriers, but Prime Minister Theresa May's proposals have been criticized by both Brexiteers, who want a cleaner break from the bloc, and the European Union. McLaren Automotive is looking at having its cars certified by both a British and an EU agency to smooth sales. It is also planning to stockpile critical components and change shipments into the EU around Brexit if there is disruption. "I will sell a little more in January and February and plan to pick the volume up in May and give us a leaner period through the change point," Chief Executive Mike Flewitt told Reuters. BMW, which said last week it would move the annual summer-time shutdown of its British Mini plant next year to April, is looking for lorry parking areas and warehousing on both sides of the channel and is seeking to sign contracts to lease certain locations, a spokesman said. It is also investing in IT systems to handle any new red tape as carmakers estimate tens of thousands of new documents could be needed if tariffs and customs are imposed. The German carmaker's Brexit plans are costing millions of pounds, a source familiar with the matter told Reuters. But Honda, which builds 10 percent of Britain's 1.67 million cars at its Swindon plant in southern England, is not in the market to buy "huge amounts of warehousing space," its Europe boss Ian Howells told Reuters. "It's been a very precise calculation or estimation of what components need to be brought in," he said, adding the firm could also alter its output to sell more into the EU at the start of next year. Waste of money? Many British carmakers have also asked suppliers to look into how they would handle delays at ports, executives told Reuters, as thousands of parts, engines and finished models move between Britain and the continent every day.