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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.

2013 BMW M3 Coupe Lime Rock Park Edition

Sic Transit Gloria
I like difficult cars. I like turbo "moments," dramatic weight distribution, low-grip, peaky power delivery, and overly quick steering, along with ultra-short wheelbases and any number of other non-racecar-perfect dynamic foibles. I love the newest generation of BMW cars and engines - all turbo'd up with tons of torque and power everywhere in the rev range, too. But what I think the enthusiast community will miss when this 2013 M3 Coupe becomes the 2014 M4 Coupe - replacing its idiosyncratic, small-displacement, revvy V8 for something like a triple-turbo, directly injected, inline six-cylinder powerhouse in the process - is the work it takes to drive the car fast and perfectly. Sometimes small flaws just make things better; my mistress' eyes are nothing like the sun, and all that.
The idea of this E92 M3 going away then, magnified by the loss of the M3 badge for the coupe, is at best bittersweet for me. This generation of M car is already surpassed in terms of raw thrills by the better-than-ever Mercedes-Benz C63, a car that doesn't ask its driver to sacrifice low-end grunt or the very latest in amenities in return for stellar backroad performance. Yet any time I've been lucky enough to lap a track in the M3, it has quickly become clear that the Bimmer is the better on-edge tool. With the freedom to wring the neck of the 4.0-liter V8 and room to exercise the lovely balance of the car, the E92 is hard to match (even six years after its debut).

BMW says SUVs killed the sports car market

In many ways, we're living in a golden age of automotive performance. After all, it's possible to show up at a Dodge dealer, hand over about $60,000 and storm away with a 707-horsepower Challenger Hellcat. Or for those who prefer a touch more luxury, the BMW M4, Mercedes-AMG C63 and latest Cadillac ATS-V offer between 425 and 503 horsepower, depending on your pick, with a bit more poshness. However, none of these powerful vehicles fit the classic definition of a two-place, droptop sports car, and according BMW head of sales Ian Robertson, that's because the segment is very much in the doldrums.
According to Robertson, two factors seriously wounded the classic sports car market. First, the global economic crisis of a few years ago put a serious hurt on sales, according to Bloomberg. Further worsening the situation, the boom in popularity of luxury SUVs and crossovers in the past few years hasn't allowed for much recovery. Even car-hungry China hasn't helped much because of the smog in many cities and preference among some of the very rich there to be chauffeured.
Combined, Audi TT, BMW Z4 and Mercedes-Benz SLK sales peaked around 114,000 units a year in 2007, but they are only expected to reach 72,000 annually by the end of the decade. Robertson is pretty pessimistic about the market's comeback too. "Post-2008, it just collapsed. I'm not so sure it'll ever fully recover," he said to Bloomberg.