The competition between Audi AG and BMW AG, the top two premium vehicle manufacturers in the world, has heated up with their announcements in the past week on achieving more ambitious vehicle sales and profit goals.
Specifically, Audi is targeting double new-car sales and a profit margin of 8 percent to 10 percent by 2020. On the other hand, BMW expects to exceed its 2011 earnings and sales goals.
Last Tuesday, BMW disclosed that it expects its annual earnings to be significantly better than the previous estimates due to an extra 100,000 in car sales and a soaring profitability at its core vehicle business.
According to the company’s statement, the automotive segment is now predicted to achieve an EBIT margin of more than 10 percent for the full year in view of the strong performance to date as well as a positive outlook for the coming months.
The luxury vehicle manufacturer estimates its 2011 sales to increase more than 10 percent to at least 1.6 million vehicle units compared to a prior forecast of more than 1.5 million. During the first half of the year, the BMW Group sold 833,366 vehicle units, a yearly increase of 19.7 percent.
On the other hand, Audi intends to increase its new-car sales by 100 percent under its Strategy 2020 plan, the company’s CEO Rupert Stadler informed Automotive News Europe last week.
He added that the company intends to sell more than 2 million cars a year by 2020. Audi, which sold almost 1.1 million vehicle units last year, is hoping to sell 1.5 million vehicle units by 2014, a year ahead of schedule, Stadler revealed.