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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.

Mini testing new JCW on the Nurburgring Nordschleife

Mini fans have had plenty to chew on lately. In the past month alone, the Anglo-Saxon automaker revealed its quirky, one-off Paceman Adventure pickup and dazzled showgoers over the weekend at the Concorso d'Eleganza Villa d'Este with the Superleggera Vision concept. But what enthusiasts (to say nothing of dealers) have been really waiting for since the debut of the new Mini hatchback late last year has been the new John Cooper Works performance model. And that's just what we have here.
Spied undergoing testing at the Nürburgring, this JCW prototype looks about ready for production, but is still keeping its front end under wraps. We can still discern the larger front intakes and bigger brakes with red calipers front and rear, and while the rear bumper is still stock, the wheels are definitely JCW: similar to those worn by the John Cooper Works Concept unveiled in Detroit a few months ago, they look more like five-spoke versions of the outgoing GP model's four-spoke units than the BBS-style alloys of the last John Cooper Works hatchback.
The new JCW is still probably a few months away from debut, but we're expecting around 230 horsepower under the hood when it does arrive.

Mini might not replace Paceman, Coupe, Roadster

Nobody could argue at this point that Mini (like its parent company BMW) has not mastered the art (if you could call it that) of filling every niche with its own model. But with the third generation of Mini now upon us, some of the company's strategists are asking themselves what the point is of it all.
The outgoing second-generation Mini spawned too many variants to count. So far the new model has only surfaced in hatchback form, but the brand may roll out quite as many variants this time around. Instead it is looking at its lineup in terms of pillars.
The quintessential hatchback we've already seen would be one pillar. The Countryman crossover would be another. And the production version of the new Clubman concept which Mini displayed in Geneva would be a third. A convertible based (like the existing one and the one that came before it) on the hardtop hatchback is likely to follow, but don't expect too many other versions.