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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.

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:

Mini teases new Clubman

Mini is expected to expand its refreshed lineup with the reveal of the new Clubman, at the upcoming Frankfurt Motor Show. So to give us something to look forward to, it has released the teaser image you see here. Previewed in concept form in Geneva last year, by the Vision Gran Turismo a few months ago, and by numerous prototypes spied undergoing testing in between, the new Clubman promises to be even longer and more versatile than the previous model. That's due in part to the emergence of the five-door version of the core Mini Hardtop, which already packs more (or at least more-conventional) doors than the previous Clubman. The new one, then, is expected to go with a similar front-hinged door setup, and keep the split rear cargo doors from its predecessor (and the concept) in place of the smaller model's liftgate. The sketch was revealed on a promo page for Mini's "Go With Your Gut" campaign. Dark and sketchy as it is, there's little to be told from the teaser rendering above, but you can just make out a different roof design from the show car and an offset exhaust in place of the concept's center-exit pipes. We'll just have to hold on for a while longer to see the finished product. Related Video: