Bmw remains optimistic despite European crisis

Article by Christian A., on July 14, 2011

Even with the dwindling demand in Greece and southern Europe and despite the economic data implying a cautious outlook in the U.S., BMW remains optimistic. This is because its new models are raising sales growth in emerging markets to as high as 70%.

In an interview, BMW Marketing Director Ian Robertson said that the markets in China, Brazil, South Korea and Turkey are having a sales growth of at least 60% while Europe is "a tale of north and south."

In London, Robertson said that BMW is anticipating much success as its markets are getting stronger; however, it sees “some potential risk."

He said that he believes some economies will face more difficulties. A few days ago, BMW's automotive division raised its profit and sales forecasts, explaining that the demand in the second quarter is expected to go up in the upcoming months.

BMW expects to sell 1.6 million vehicles in 2011, with earnings before interest and taxes surpassing 10% of revenue. He said that the U.S. auto market is far from its condition in 2007 when it peaked with sales of about 17 million units. He expects sales to reach 12.5 million to 13 million units from a low of about 10 million.

He said that there are several U.S. economic indicators that make BMW become “more cautious.” He explained that the unemployment rate isn’t improving and the housing market has yet to recover.

The U.S. sales of the BMW Group have risen by 18% this year through June, with its BMW brand reporting a 13% sales increase while the Mini brand is up 42%. This year, the overall U.S. car and light truck market has grown by around 13%.

Topics: bmw, europe

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