Bmw confident that it can achieve 2012 margin targets

Article by Christian Andrei, on October 17, 2011

BMW may still be able to achieve earnings before interest and taxes (EBIT) of 8 to 10% of revenue at its core automotive business in 2012, according to an article on German weekly business magazine WirtschaftsWoche. In September 2007, BMW said that it wanted to reach its EBIT margin at its automobiles segment next year.

But several investors are now uncertain about future growth due to worries that there will be a recession in western developed economies as well as concerns of a hard landing in China.

BMW’s finance chief Friedrich Eichiner said that the "margin of 8-10%" continues to be his goal for 2012. Last Friday, Eichiner told Reuters during the launch of the latest 3 series that luxury car sales in China would persistently increase in 2012.

Eichiner told WirtschaftsWoche that his forecast for this year is unchanged and that he still expects to sell more than 1.6 million vehicles and to achieve an automobiles segment EBIT margin of over 10% this year. He added that BMW will still reach this target even if conditions get worse.

The 3-Series Sedan from BMW has long been considered as the first in the compact sports sedan segment. Over time, the 3-Series Sedan has become the symbol of the brand when it comes to sporting capability, dynamics, and visual appeal. This is the sixth generation version of this series and with the elegant and dynamic lines, put emphasis on the sporting qualities of this mid-size model.

When compared to the models before it, the new 3-Series may have bigger dimensions but even then remains to have that excellent mix of elegance and sportiness. This is because like the generations before it, the dynamic proportions were due to the combination of the set-back greenhouse expected from a BMW model, the long wheelbase, short overhand in the front, and the sweeping bonnet.

In terms of design, the profile of the new model follows a wedge shape and since it has a wider track, having an extra 37 mm on the front and additional 47 mm on its rear, it helps highlight the sporting look of this new model.

An advantage of putting emphasis on the width is that it was possible to have the front end have multi-faceted surfaces and thus give it a look that is sportier than before. In order to show that the new 3-Series does have a new stance, the kidney grille is does not only slant forward a bit but comes with a thick and wide interpretation. In order to get that focused look the brand is known for, the twin headlights have corona rings, above of which are the LED accent lights placed similar to eyebrows.

This is however possible only if the customer specifies the use of xenon headlights. Still on the headlights, they go further up on the kidney grille’s frame ensuring that both the headlights and the kidney grille combine to form one style unit.

This made sure that the model’s broad-set stance is highlighted even further. Another change in the new 3-Series is that instead of a single air intake in the central portion, these have been replaced with two intakes, both of which have been made larger. Since they have been placed just below the headlights and to the outer edges of its front end, it puts in that additional depth to the already sporty style.

Going to the main ducts, one can see that on its far right and far left are small vertical intakes that results in the appearance of an Air Curtain. With this, the new 3-Series has better air flow on the wheel son its front and this improve even further the aerodynamic efficiency, in addition to lowering fuel consumption, especially when running at high speeds.

Topics: bmw, sales

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