BMW Lost Money Last Summer But Sold More Cars

The reasons for which are numerous and complex.

Although 2018 still has a few months to go, the sales results from the third-quarter of the year are in and, as it turns out, BMW actually lost money. According to its own Q3 report and an analysis by Reuters, the German automaker reported a 27 percent drop in operating profit to $2 billion due to currency effects, higher raw material prices, higher research and development costs, and trade tensions between the US and China. Oh, and there’s also a price war going on in Europe.

Interestingly, BMW reported a slight increase in overall vehicle deliveries for the period of July through September. However, overall operating return dropped from 8.6 percent to 4.4 percent, which was below BMW’s targeted range of 8 to 10 percent.

“Along with the rest of the industry, we are increasingly confronted with adverse external factors, the negative impact of which cannot be fully offset," said Chief Financial Officer Nicolas Peter. BMW hopes to save money by bringing down some costs in order to better help offset spending on upcoming vehicle launches, specifically EVs. As for that price war in Europe, the cause can be pinpointed to new emissions testing rules. BMW also had to set aside funds to finance recalls of fire-prone vehicles, including the 5 Series diesel, and other warranty claims.

And then there are the trade tensions between the US and China. Tariffs are having an effect and BMW, like all other automakers, doesn’t expect this disagreement to be solved in the near future. An increase in raw material prices also didn't help matters.

“Compared with 2017, additional upfront expenditure of around 1 billion euros for the mobility of the future and a high three-digit million euro negative impact from exchange-rate and raw materials price developments had been factored into expected earnings for the year,” BMW said.

One of the key raw materials automakers need these days is cobalt. BMW plans to buy more of it and then make it available to battery cell suppliers in order to secure its own supply of batteries for its upcoming EVs. Like any automaker, BMW wants to end the year on a high note by actually making money, and the clock is ticking fast to ensure that happens.

10 Affordable Convertibles To Give You The Perfect Summer

These are the most wallet friendly hair tusslers on the market today.

Convertibles tend to be aspirational vehicles that cost thousands more than their tin top counterparts. That is the common wisdom anyway and often why shoppers dismiss them out of hand as expensive toys for the well-heeled. Well, in certain situations this may well be the case but here we have rounded up ten of the most affordable new convertibles on the market to show you that sometimes you can have your cake and eat it. With the roof down.

BMW 230i Convertible ($40,750)

The 2-series is not the cheapest sporty coupe around but it is just about the most cost-effective way into BMW ownership. You still get the rear-wheel-drive dynamics and strong performance that are hallmarks of the brand. Even the base 248-hp 230i Convertible gets to 60 mph in 5.6-seconds while sipping fuel at an overall 34 mpg. As with most German luxury cars you should be careful of ticking too many options but a few like the $500 Driver Assistance Package are well worth it. Price increase over hard top: $5,800

Chevrolet Camaro Convertible (32,900)

The Camaro is an undoubtedly cool looking car, made even more so by the removal of its roof. Sure, the V8-powered versions make all the right noises but if your budget doesn’t stretch that far then the base 275-hp 2.0-liter turbocharged four is actually rather good. If you really can’t bear the thought of a four-pot powering your Camaro then the naturally aspirated 335-hp 3.6-liter V6 is a $1,495 option. The base 1LS trim doesn’t get you much but power front seats, rearview camera and 7-inch touchscreen do come standard. Price increase over hard top: $6,000

Ford Mustang Convertible ($31,180)

The Mustang is one of the only two non-SUV vehicles Ford will be selling in the not too distant future. Tto avoid them axing this American icon in the future it is up to us to go out there and keep buying them. The affordable 2.3-liter turbocharged EcoBoost versions make it easier to do so. It gets 310 hp as standard and there are plenty of tuners willing to push that number much higher. There are tons of options available but even in base form the Mustang is a sweet ride. Price increase over hard top: $5,500

Mazda MX-5 Miata ($25,295)

For the pure roadster experience you are going to struggle to beat the MX-5 Miata. It may not offer big horsepower but there is not much weight for the 155-hp 2.0-liter engine to push around either. The Sport Trim is cheapest and offers standard LED headlights, 7-inch color touchscreen and a 6-speed manual transmission. For an additional $3,860 you can have the Club trim which adds an LSD and sport suspension (Useful stuff for track days). Price increase over hard top: No real hardtop alternative but RF hardtop convertible actually costs $2,755 more in Club trim.

Fiat 124 Spider ($24,995)

The 124 Spider is more than just a rebadged Mazda Miata, it gets its own Italian-esque styling and uses Fiat’s own turbocharged engines. The Classica trim comes with a 160-hp 1.4-liter turbocharged engine and a short-throw 6-speed manual shifter. There are also the more expensive Lusso and Abarth trims but stick to the base model as it offers everything you need in a back-to-basics roadster. Price increase over hard top: No hardtop alternative.

Volkswagen Beetle Convertible ($25,440)

The Beetle is not quite as successful a retro-remake as the Mini but it has evolved over the years to become a rather decent car in its own right. The sole powertrain option is a 174-hp 2.0-liter turbocharged four combined with a 6-speed automatic transmission. There is no need to venture beyond the base model here, you need only spend an extra $25 for the flower vase which sticks on to the dashboard. Flower not included. Price increase over hard top: No hardtop alternative but a similarly equipped 1.8-liter Golf Hatchback is around $2,500 cheaper.

Mini Cooper Convertible ($25,950)

If you're looking for a combination of driving fun, customizability and enough space for two adults and a pair of very short friends, then this is the car for you. The Mini Convertible is fun and almost sensibly priced in base 134-hp 1.5-liter form, although you can spend over $40,000 for a fully-specced 228-hp JCW model. The sane option lies somewhere between these two extremes in the very capable 189-hp Cooper S. Price increase over hard top: $5,000

Jeep Wrangler JK ($24,590)

The previous generation JK Wrangler is still available from dealers for a little longer so if you want a budget convertible that can tackle the (very) rough stuff then stop reading this and order one pronto. The JK Wrangler is no boulevard cruiser but in its final guise is far more polished than ever before. You get a strong 285-hp 3.6-liter V6, Command-Trac 4x4 system and a washable interior with drain plugs. The all-new JL Wrangler starts at approximately $3,500 more so it is up to you whether the enhanced refinement is worth the extra outlay. Price increase over hard top: $595 (This is for the Sunrider Soft Top)

Smart Fortwo Cabrio ($25,390)

The Smart is perhaps the ultimate city car. Its tiny size and electric drivetrain make it ideal for short hops around the city. The Cabrio version starts at the mid-range Passion trim level so you get some decent equipment and the 80-hp electric motor feels strong at city speeds and you get up to 102 miles range in combined driving. It isn’t particularly cheap but with up to $7,500 in federal tax incentives and potentially additional state dependent offers it starts to make a lot more sense. Price increase over hard top: $2,710

Fiat 500c ($16,490)

The Fiat 500 is a great city car, offering a level of style and customizability that sets it out from other budget offerings. The addition of a convertible body style only adds to its appeal and it comes at a small additional expense. In Pop trim you get a 101-hp 1.4-liter engine, remote keyless entry and even a 5-inch touchscreen. Aside from the numerous exterior and interior personalizations on offer you can add a lot of sporty aggression too if you opt for the 160-hp Abarth trim. That does add a hefty $5,000 to the base price though. Price increase over hard top: $1,495

Conclusion

After assessing a range of alternatives, we found that opting for a convertible will cost you approximately 15% more up front. That may amount to not all that much more each month if you are buying your new car on a lease plan. Whether the benefits of being able to enjoy roof down motoring is worth more to you than spending that money on more standard equipment or a bigger engine is a personal choice. At least it is good to know that the added costs of choosing a drop top are not as severe as most people think.

5 Rental Cars Gearheads Need To Take On Vacation This Summer

Skip the economy car and head straight to the exotics.

For many gearheads a rental car is equivalent to a prison sentence on wheels. That’s because most affordable rental cars are boring, slow and cheap. But then again, when it comes to a rental, “cheap” is usually the primary objective. But what if you decided to throw caution (and your wallet) to the wind? America's biggest rental car chains actually offer some pretty cool rides if you're willing to pay for them. Here are the best cars from four of the country's top rental outfits.

Enterprise actually has a large selection of vehicles in its aptly named “Exotic Car Collection.” This fleet is located across the country, although you’ll need to be in a bigger city to access it. Sorry, the Enterprise at the Boise airport doesn’t carry Aston Martin DB9s. Enterprise has a pretty deep roster of luxury sports cars, convertibles and SUVS. That made this choice tough, but I’ll say the coolest car in the Enterprise fleet is the Bentley Continental GT Convertible. There is an R8 Spyder on offer, and while it's quicker the Audi just can't match the allure and mystique of the Bentley.

Fun fact: The only time I used Alamo was to rent a car in Tijuana. I got a Ford Fiesta (perfect name) and drove it down to Los Cabos and back in 12 days. That car was awesome, but I can’t say the same for Alamo’s upscale offerings. They are pretty pathetic, which is why I’ll crown the BMW 5 Series (or similar) as the best of the bunch. While Alamo doesn’t have any upscale automakers on its roster, there is a wide variety of standard luxury options to choose from. Infiniti, BMW, Lincoln, Buick, Audi—they’re all here and can possibly be rented in Tijuana if you’re brave enough to pilot an A3 through the madness that is a Mexican roundabout.

The Avis Signature Series isn’t as loaded as the Enterprise Exotic Car Collection but it’s in no way as depressing as Alamo’s offerings. How a Lincoln Navigator made the cut I’ll never know, but if it were up to me I would go with the Maserati Quattroporte. Sure, the Maserati may catch fire or be recalled but that’s not your problem as a renter. Should you fear fire then there are a few killer alternatives, including the BMW 7 Series, Mercedes-Benz E-Class and the Chevrolet Corvette.

Hertz Dream Cars isn’t in the same class as Enterprise’s but is good enough to rival the Avis Signature Series. Here there are no American brands to be found, so this lineup is a cut above Avis in that respect. Actually, there is one car here that’s American and it’s the 50th Anniversary Ford Shelby GT-H. I almost went with the Mercedes-Benz G550 but to be fair you could probably rent that elsewhere. This Mustang sports a 5.0-liter V8 and a performance tune job by Shelby. You may not draw eyeballs like the Maserati or convertible Continental but you can smile from within knowing that you’re in a special edition Mustang GT built specifically for a rental car company. That’s worth celebrating…right?

11 Convertibles For Every Budget To Get You Ready For Summer

A selection of open-topped sports cars for every occasion.

It is just about time to start enjoying some warm weather again and a convertible is just the thing to make the most of the sunshine. We have picked 11 of our favorite models on the market today, from affordable little roadsters to some of the fastest and most powerful convertibles on the planet. Some offer comfort and luxury for four while others are capable of blow-drying your hair at 200 mph. The choice is yours.

Mazda Miata

The Miata is a roadster that eschews any superfluous distractions that detracts from the joy of driving. Rear-wheel-drive, a revvy naturally aspirated engine and a featherweight body shell combine to make this $25,295 roadster the perfect weekend companion. You can also have an RF hardtop convertible for $31,910, but whichever you take please stick to the manual transmission versions.

Fiat 124 Spider

The 124 Spider is heavily based on the Miata but it comes with its own 160-hp turbocharged motor and styling that emulates drop-top Fiats of the past. Prices are similar to the Miata too and if you are more into boulevard cruising than apex chasing then a well-equipped automatic 124 could be the ideal fit.

Chevrolet Camaro

The Camaro is all about aggressive performance and big horsepower. You can scare yourself silly in the 650-hp 6.2-liter supercharged V8 if you like but even the 335-hp 3.6-liter V6 is plenty of fun and you won’t want or need more performance on the streets. At $34,395 it is conspicuously good value and worth the extra $1,500 over the base 2.0-liter turbo engine.

Ford Mustang

The Mustang is about as American as motoring gets. In convertible form the experience is even more enjoyable and as with the Corvette, there is a lot of performance to be had for the money. The base 2.3-liter EcoBoost motor is not short on power although you will miss the V8 soundtrack with the top down and that is why the $44,690, 460-hp 5.0-liter Mustang GT Premium Convertible is our choice. Perfect for cruising the beaches and blasting up a mountain pass.

BMW 4-Series Convertible

It may not be able to compete on pricing with the Camaro and Mustang but once you get behind the wheel and explore the luxurious interior you will see where the extra money has been spent. The 4-Series is also one of the few hardtop convertibles around and the rear seats are more useable than in the Mustang too. While the 320-hp 6-cylinder 440i is the pick of the bunch, even the base 248-hp 430i has plenty of power on offer if not much aural excitement to go with it. It is however a tad more affordable at $51,650 before options.

Mercedes-Benz E-Class Cabriolet

The recently released E-Class convertible is a beautiful grand tourer that sits in the middle of Mercedes’ convertible offerings in both price and performance. The E 400 comes with a twin-turbo 329-hp 3.0-liter V6 which is good for a 5.5 second 0-60 mph time. The pricing starts at $66,300 but that can easily rise if you add some desirable extras like adaptive air suspension and a Burmester audio system.

Jaguar F-Type Convertible

British sports cars have long been full of charm and character and with the F-Type they also deliver on the performance front. The 296-hp 2.0-liter turbo motor is strong, if not a tad characterless, but there are plenty more to choose from. For example, a V6 that delivers up to 400-hp depending on the trim and a supercharged 5.0-liter V8 that makes 575-hp in the top SVR. $63,000 is your starting point for the four-potter but don’t expect much change back from $100,000 if you go for a V6 model with some nice extras.

Porsche 911 Carrera Cabriolet

The 911 range has been the benchmark sports car for decades, its combination of everyday usability and stonking performance has never been better in the latest iteration. Even the base Carrera Convertible is a formidable offering, in PDK trim it blasts to 60 mph in 4.2-seconds yet still returns an average 25 mpg. All this ability does come at a price though, $94,310 to be precise. Budget another ￡10,000 for some options as it gets pricey pretty quickly.

Ferrari 488 Spider

661-hp from a 3.9-liter V8 is impressive, so is a 210 mph+ top speed and let’s not forget a price-tag that starts at $255,000 before options. Yes, the Ferrari 488 Spider is all about big numbers but it is also docile enough to trundle around at more sedate speeds when called upon.

Chevrolet Corvette Z06 Convertible

When it comes to the old bang-for-your-buck equation, the Corvette has the competition beat before even turning a wheel. The Z06 comes packed with a 650-hp supercharged V8 which launches it to 60 mph in under 3-seconds. All this for $85,585 in convertible form, it also comes packed with kit and sounds as ferocious as you would expect. Can it get any better? Why yes it can…

Chevrolet Corvette ZR1 Convertible

The ZR1 is what happens when you take a Z06 and feed it pure adrenaline. It pushes the power levels up to 755 hp and has numerous aero and chassis upgrades to help it stay stable at its 212 mph top speed. The price is a somewhat heftier $123,995 but still well below anything else that could potentially stick with it on the road or track.

Gone are the days when owning a convertible meant you had to accept a noisy and leaky cabin as part of the package. From the $25,000 Miata to the $250,000 488 Spider, the modern convertible is as practical as its hardtop counterpart (if it has one) and at the press of a button you get to enjoy open-topped motoring.