BMW is still expecting to post another sales record in 2013, to be boosted by launch of 11 new models. The German carmaker expects the new models, including the 3-series GT, and the surging demand in China and the United States to offset the effects of the current debt crisis on the European vehicle market. BMW chief executive Norbert Reithofer remarked at the company’s annual shareholders meeting that they are preparing for the carmaker’s next phase of growth and are making the group more competitive for the future.
BMW is making fresh investment on new vehicles and technologies as fellow German carmakers seek to gain the lead in the luxury sales race. However, additional spending may mean lower earnings growth, even as sales increase. Reithofer remarked that anyone “who wishes to shape the mobility of tomorrow” must make the necessary investments today. BMW still expects its pretax profit for 2013 to match 2012's figure of EUR7.82 billion ($10.2 billion).
Earnings before interest and taxes for the auto division are expected to be between 8 percent and 10 percent of sales in 2013, compared with 10.9 percent in 2012. BMW still leads the luxury sales race through the first four months of the 2013, boosted by higher demand for the X1 compact sport-utility vehicle and the 3-series sedan and wagon.
Deliveries of the BMW brand grew 7.1 percent to 512,000 vehicles, outpacing the 6.7 percent gain by Audi and the 5.6 percent surge by Mercedes. To maintain its edge over its main rivals, BMW plans to launch 25 new models by the end of 2014, with 10 of them being fresh models.