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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.

2016 Pebble Beach Concours d'Elegance: It's all in the details

It's no secret that Pebble Beach is an ode to gorgeous, and mostly, classic cars. The car show may be a place for automakers to showcase extremely expensive cars to wealthy buyers, but it's also one of the go-to places for enthusiasts that love automobiles and culture. While it's easy to be overwhelmed by the overall beauty of a car, the real magic often needs closer inspection to be realized. Every car at Pebble Beach is a work of art, but the true beauty of the vehicles lies in the details. And Autoblog's photographer, Drew Phillips, managed to capture the details on some gorgeous cars. From the Lamborghini Miura's exquisite steering wheel to Rolls-Royce's Spirit of Ecstasy, it's all at Pebble Beach. We think the details on some of the cars are prettier than the cars themselves, but don't take our word for it. Check out the beautiful gallery above and enjoy the tiny bits and pieces behind some of the prettiest cars in the world. Related Video: Featured Gallery 2016 Pebble Beach Concours d'Elegance Details View 75 Photos Image Credit: Copyright 2016 Drew Phillips / Autoblog Misc. Auto Shows Aston Martin BMW Ferrari Lamborghini Rolls-Royce Pebble Beach

'Most expensive safety deposit box in the world' has a Rolls-Royce ferry

Ultra-high-end security and storage company International Bank Vaults (IBV) has several locations around the world, but as of next week, none will be more exclusive than the London branch. IBV is set to open a new vault with what's claimed to be the most expensive safety deposit boxes in the world. With price come perks, however, including a personal Rolls-Royce Ghost chauffeur to take customers to and from the vault. According to The Guardian, IBV, owned by South African millionaire Ashok Sewnarain, decided to open the new vault as a response to rapidly increasing demand for private wealth storage from the world's richest people. “We wonÂ’t deal with millionaires," managing director of the new facility Sean Hoey said. "We will be dealing only with billionaires.” For the top tier of the rich, a full room can be rented out for about $3.3 million per year. On a much lower scale, the cheapest available safety deposit box will cost about $785 to rent per year. Those boxes are pretty small, however, at about two inches high, 6.3 inches wide, and 19.3 inches deep. Hoey says it's enough space to store jewelry or "a fair few gold bars."  At this location, when the customers need to deposit or withdrawal spare gold bars in between polishing sessions, a chauffeur will arrive in a Rolls-Royce Ghost for proper luxury transportation. To get to the underground vault, two door people will take clients through fingerprint and iris scans. The vault itself is secured from theft attempts by steel lining in the walls, ceiling, and floor. Read more and see photos of the building on The Guardian. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.