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BMW warns profits will fall, plans $13.6 billion in cost-cutting
Wed, Mar 20 2019FRANKFURT, 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.
Rolls-Royce shows its festive side with limited-edition Neon Nights models
Sun, Nov 29 2020Anyone who has traveled to Las Vegas has undoubtedly seen brightly-colored Rolls-Royces parading down the Strip, but these head-turning creations usually weren't painted at the factory. The firm decided to flaunt its flamboyant side and one-up the tuners by releasing a colorful trio of limited-edition models named Neon Nights. Rolls-Royce based the Neon Nights on the Black Badge variants of the Wraith, the Dawn, and the Cullinan. Buyers have three colors to choose from: Lime Rock Green (for the Wraith), Eagle Rock Red (for the Dawn), and Mirabeau Blue (for the Cullinan). The first two receive gray leather, while the latter gets a white interior. Stylists didn't choose these colors at random. Lime Rock Green, in Rolls-Royce's own words, is naturally bestowed on the Australian green tree frog. One of its paint specialists spotted one while traveling. Eagle Rock Red is inspired by the flowers of a Hawaiian tree named 'Ohi'a lehua, and Mirabeau Blue is the paint team's tribute to the Periander metalmark butterfly that's native to Central and South America. After selecting suitably exotic plants and animals, Rolls-Royce's in-house paint team set out to give each hue a neon-like glow. Building the Neon Nights cars on the Black Badge variants peppers a bit of irony on the project, but it also gives customers more power. Pop the Cullinan's long, stately hood to find a 6.75-liter V12 that's twin-turbocharged to 600 horsepower and 664 pound-feet of torque, up from 563 and 627 in the regular model. Both the Dawn and the Wraith receive a twin-turbocharged, 6.6-liter V12 with 593 horsepower and 620 pound-feet of torque on tap, increases of 30 and 15, respectively, over the cars not ordered with the optional Black Badge package. Rolls-Royce explained it initially planned to cap production at one car per color, and it noted the trio was created specifically for customers in the United States. Unexpected demand from other global markets convinced the company to paint three additional cars in each color, meaning a total of 12 examples will be produced. Pricing hasn't been announced yet, but the buyers the British firm is trying to reach don't need ask for a window sticker. Related Video:
Rolls-Royce Digital Dawn Launch | Autoblog Minute
Fri, Sep 4 2015Rolls-Royce unveils its newest vehicle in grand modern fashion.he four seater was revealed with a multi-platform global digital event. The British automaker originally teased Dawn using social media, with the grand reveal coming via a live web feed. Rolls-Royce Autoblog Minute Videos Original Video rolls-royce dawn