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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.

2014 Mini John Cooper Works GP

About three weeks prior to this brief yet balls-to-the-wall drive on the Spanish island of Mallorca, I saw that Mini USA announced pricing for the keenly anticipated Mini John Copper Works GP. And that number would be - *a-hem* - $39,950 for starters.
I am always intent upon finding the pinnacle of what a certain car promises me, and almost at any cost. Almost. When I think "steaming hatchback," I think of something exactly like this Mini GP, and the steep price doesn't squelch my pleasure. They're only building 2,000 of them anyway, and the units coming to the US will start arriving in owners' hands on March 16 of next year. These buyers will be extremely happy and remorse-free.
Five scorched laps at the very Mini-perfect Circuito Mallorca RennArena showed me all.

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: