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Rolls-Royce gives up on electric, diesel models in favor of hybrid

Rolls-Royce is not what you might characterize as one of the greenest automakers on the market. Its vehicles tend to be rather large, saddled with lots of plush leather, thick carpets and wood trim, and powered by twelve-cylinder engines in excess of six and a half liters. But that doesn't mean that the stoic British automaker isn't trying to clean up its act, even if its customers haven't responded in kind. Rolls did not receive a single order for the all-electric Phantom. A few years ago, Rolls-Royce showcased an all-electric Phantom prototype called the 102EX (pictured above) and sent it on a global tour to demonstrate to customers around the world. But in speaking to company representatives, Autocar reports that Rolls did not receive a single order for such a vehicle. Nor did customers respond favorably to the idea of a diesel Rolls-Royce. Prospective and existing clients exhibited "significant hostility" towards the idea, despite a diesel prototype that was "effectively inaudible" in comparison to the existing gasoline models while delivering torque-driven performance which the company characterized as "impressive" while significantly reducing carbon emissions. As a result, the diesel project was killed off just like the electric one. That doesn't mean that Rolls-Royce is giving up, though. In the wake of the diesel and electric projects, Goodwood is reportedly proceeding with a hybrid powertrain borrowed from parent company BMW, which offers a wide array of hybrids including versions of 3 Series, 5 Series and 7 Series sedans, the X6 crossover and the i3 and i8 PHEVs.

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.

Blacked-out Rolls-Royce Cullinan Black Badge returns with new design

Rolls-Royce's blacked-out Cullinan Black Badge was popular enough to warrant a follow-up. Designed for buyers who want a less traditional look, the Cullinan Series II-based Black Badge features specific exterior details and carbon fiber trim that takes 21 days to manufacture. BMW-owned Rolls-Royce isn't the only carmaker that offers a blacked-out trim level, but it takes the look further than most. Up front, the illuminated grille is finished in black with contrasting silver accents, though buyers can alternatively order an all-black grille, and all of the exterior trim pieces (including the power-retractable Spirit of Ecstasy emblem, the trim around the window, and even the door handles) are black as well. Black Badge-specific 23-inch wheels and red-painted brake calipers round out the list of major exterior changes. Inside, one of the highlights is the Technical Carbon trim also found in the original Cullinan Black Badge. Rolls-Royce notes that this trim is finished with six coats of lacquer, cured for 72 hours, and hand-polished. There are 23 individual trim pieces; making them takes 21 days. One of the numerous upholstery options is a type of cloth called Duality Twill. It's made from bamboo and inspired by the bamboo grove in Le Jardin des Mediterranees, which is a park located in the south of France that's home to numerous exotic plants from around the world. Here again, the amount of work that goes into each detail is stunning: Rolls-Royce notes that making a full Duality Twill interior requires up to 2.2 million stitches and 11 miles of thread. Other upholstery types are available, and the list of options includes a champagne cooler. Power comes from a stock, 6.75-liter V12 that's twin-turbocharged to 591 horsepower and 664 pound-feet of torque. It spins the four wheels via an eight-speed automatic transmission. Rolls-Royce added a driving mode called "Low" that changes the exhaust system's tone and volume and makes the shifts 50% quicker when the throttle is pushed at least 90% in. It also decreased the brake pedal's travel. There's no word yet on how much of a premium the Black Badge carries over the standard Cullinan Series II.