#BmwGroup

The Justice Department has opened an antitrust probe into four automakers that formed a pact with California to compromise on tailpipe emissions, effectively circumventing federal regulators, last July.

Over the summer, Ford Motor Co., Honda Motor Co., BMW AG and Volkswagen Group announced a joint agreement with the California Air Resources Board to adhere to fueling standards slightly lower than Obama-era rules but still significantly higher than the Trump administration’s proposal from 2018. The Justice Department is seeking to determine whether or not that qualifies as a violation of federal competition laws.

Superfans of BMW’s M subsidiary — or, more accurately, its cars — are in for some good news. The German automaker announced an extra special heritage edition of the M4 on Tuesday. Called the BMW M4 Edition ///M Heritage, and limited exclusively to the F82 coupe, the model is supposed to commemorate everything the M Division stands for.

While that absolutely includes making BMW money, the automaker has yet to provide the model with an MSRP. That said, its special nature will undoubtedly push it beyond the model’s $70,000 base price. It’s also limited to just 750 examples worldwide, which ought to tack on a premium of its own.

Mini’s upcoming Cooper SE, the brand’s first all-electric model, goes on sale in 2020. Based off its initial specifications, we assumed it wouldn’t be incredibly popular. While output is a serviceable 135 kilowatts (roughly 184 hp), the model’s small 32.6-kWh battery pack only allows for 146 miles of range using the optimistic European testing cycle. While that would have made it highly competitive in the early days of modern electrification, it’ll be at a disadvantage when stacked against the likes of the Tesla Model 3 or Chevrolet’s Bolt.

We presumed this would manifest as weak demand, leaving Mini to tug uncomfortably at its collar. But the Cooper SE is already outperforming the BMW i3 in terms of sales, and it isn’t even slated for production until November.

As automakers connect more vehicles to the internet and install app-based shops into the dashboard, we’ve become increasingly worried with in-car marketing annoyances and the prospect of companies hiding content behind paywalls. Our concerns turned out to be valid.

BMW has decided that it will charge customers an annual subscription fee if they want to utilize CarPlay in its latest models. Odd, considering most other automakers have been trying to get the platform inside their cars as standard equipment. However we’re betting that changes unless BMW gets a healthy dose of criticism.

With Oliver Zipse confirmed as BMW’s new chief executive, practically everyone theorized on how he was going to shake up the strategy established under former-CEO Harald Krüger — which revolved around gradually introducing more EVs via a highly flexible architecture. While we were disinclined to agree, a swath of industry experts and media outlets claimed this was a terrible blueprint for the brand and expected Zipse to come up with something different.

However, he looks to be offering more of the same. That begs the question as to why Krüger actually left the company and taints the validity of suggestions that his product strategy was internally viewed as a failure.

Mini might not make sense as a automotive company anymore, at least not in the United States. Consumer tastes have shifted away from small cars and practically everyone is interested in crossovers these days. While this issue has been less pronounced in Europe, where the Mini has enjoyed an uptick in sales, the brand has been struggling in North America. U.S. volumes are comparatively low and have been on the decline since 2015. It’s not a total disaster, but annual deliveries have been wallowing south of 50,000 units for a couple of years now. Nobody can pretend there isn’t a problem.

The fix, according to parent company BMW Group, is to fill up Mini’s product portfolio with crossover vehicles while also giving the little Hardtop a bit of love.

With Harald Krüger out, BMW needs a new CEO — one that can effectively transition the company into becoming and electrified automotive dreamscape. Krüger presumably wasn’t interested in taking that path. While that hardly makes him a monster, plenty of people felt that his reluctance to spend ludicrous amounts of money on developing EVs was tanking the company’s share price and making him look like a fool. Not us, though. Bending to investors every whim and chasing down trends with minimal foresight seems like top-tier dipshittery. But that’s the nature of the industry right now, for better or worse.

However, in the short term, it pays to promote electrification and Krüger’s measured strategy of gradually introducing more EVs via a flexible architecture was often seen as too conservative. Perhaps that’s the correct assertion and some new blood is in order at BMW if it’s to correct its course. But who do you pick?

Four years after taking the helm of BMW, Harald Krüger is pulling a Lyndon Johnson. The 27-year Bimmer veteran has decided not to seek a second term as CEO, the automaker reported Friday, leaving it in search of new leadership at a pivotal time in its history.

To any onlooker, it seems Krüger had enough of guiding the German luxury marque through an increasingly thorny landscape, with challenges posed by stagnating sales in the West, an economic downturn in the East, and costly, must-have EV roadmaps.

Like most brands focused on smaller vehicles, Mini is not faring particularly well in the United States and dealers have grown annoyed. Some have even decided to take BMW to court over its handling of the brand, including one owned by former Mini dealer council chair David Peterson.

The allegations? BMW of North America breached its dealership agreement by failing to effectively promote and develop the Mini brand as promised.

Deciding whether or not BMW is truly at fault should prove exceedingly difficult. But Mini is clearly struggling. Over a third of its annual volume goes to the Countryman — its only crossover model. The rest of its sales are broken up between the numerous variations of its iconic small car, which isn’t occupying the “hot segment” at present. With a not-so-diverse lineup and MSRPs better suited to larger vehicles, Mini’s annual sales have been dwindling since 2013 and failed to surpass 45,000 U.S. deliveries in 2018. Unfortunately, 2019 is already on track to be markedly worse.

Even though Mini has issued teasers for the new batch of John Cooper Works models for months, we’ve been disinclined to take the bait. It’s not that there’s something wrong with JCW cars; there just wasn’t a lot information to be gleaned from those announcements.

We were waiting for the company to confirm the rumor that the 2020 model year would see an upgraded powerplant to serve as a bit of a game changer for the brand — which is exactly what Mini did this week.

With governments strongly encouraging the growth of electric vehicles and automakers repositioning various brands to align with that goal, it’s worth a manufacturer’s time to examine the market. Mini, which BMW Group intends to evolve into an EV-focused nameplate, plans to release its first battery powered vehicle in 2020. However, before that occurs, the brand decided to commission Engine International for a little market research.

The firm conducted a general population survey of 1,004 presumably average Americans — all above the age of 18 and split equally by gender. Unfortunately for BMW, the results were less than promising. Most people still don’t seem to have a handle on what EVs offer or how they function. However, that might not necessarily be because they are clueless morons. Apathy undoubtedly plays a role here, especially as EV ownership remains relatively rare.

Automakers find themselves in the midst of a widespread electrification effort. However, the slow adoption rate of these vehicles has created some trepidation. Rather than roll out fleets of EVs en masse, most manufacturers have chosen to adopt platforms allowing for multiple powertrain configurations, relegating electrics to entirely new sub-brands or transforming lesser nameplates into EV brands.

Daimler is a good example of this. Mercedes-Benz has its EQ sub-brand, while Smart was rejiggered into a nameplate entirely focused on “electro-mobility.”

BMW Group will likely take a similar route with Mini. The brand’s first fully fledged EV is fast approaching, with the company repeatedly suggesting that it might reposition itself as an electric-focused nameplate. Peter Schwarzenbauer, BMW board member and Papa Bear to Mini, Rolls-Royce, and BMW Motorrad (motorcycles), is the man responsible for overseeing the shift, and has offered up a tentative glimpse into Mini’s future.

Cooperation is commonplace among automakers. Chrysler has worked with, or been purchased by, just about everyone at this point, but it’s far from the only manufacturer to get chummy with a rival company. Ford and Volkswagen are busy discussing their future together and Toyota tapped other brands to help it co-develop performance models like the 86 and Supra.

Despite their longstanding and occasionally bitter rivalry, Mercedes-Benz and BMW could be the next duo to cozy up to one another. According to German outlet Handelsblatt, BMW chairman Harald Krüger and Daimler management board member Ola Källenius are currently examining the possibility of an automotive alliance.

Mercedes-Benz managed to hold onto its heavyweight title in luxury sales for the third year running, at least as far as the United States is concerned. Though the domestic match was close — BMW’s 311,014 deliveries in 2018 were only a few thousand units shy of Mercedes’ 315,959. In fact, BMW volume improved 1.7 percent against 2017 while MB sales were down 6.3 percent, with most of the ground being lost in the second half of the year.

During that same time frame, Tesla sales exploded. By year’s end, the luxury EV manufacturer had 182,400 domestic deliveries under its belt — nearly four times the volume witnessed in 2017.

Mini plans to launch updated versions of its two most commodious models this summer. While many of the refinements are incredibly boring (like a new particulate filter that adheres to new European emission mandates), there are tastier aspects to cherry pick. For example, the Clubman and Countryman gain receive upgraded transmissions in Europe — which hopefully carries over North America, as well.

The change replaces the standard automatic with a seven-speed Steptronic dual-clutch transmission. Tragically, that unit has already made its way into the smaller Cooper hatchback and has proven excruciatingly slow in making its way across the ocean. Still, why you would buy a Mini 2-door and not option it with a contrasting roof and manual transmission is beyond us. The impractical little car’s saving grace is its fun factor and visual appeal, and you should probably lean into both if thinking of buying one.