BMW AG revealed that new vehicles models are driving sales growth to as high as 70 percent in emerging markets while economic data suggested a cautious outlook in the United States. It also noted the drop in demand in southern Europe and Greece.
In an interview in London, BMW Marketing Director Ian Robertson mentioned that emerging markets like South Korea, Turkey, Brazil and China are displaying an increase in sales of 60 percent or more, while Europe is "a tale of north and south."
Despite the successes of the new vehicle models and the strong growth in emerging markets, Robertson also shared that there are also some potential risks seen such as the fact that certain economies in the world that will enter “a more difficult situation.”
The company’s automotive division increased its estimates in profit and sales last week, stating that strong demand in the second quarter of this year will continue in the next months.
The company expects to sell 1.6 million car units in 2011, with earnings before taxes and interest to exceed 10 percent of revenue. Robertson also disclosed that the U.S. vehicle market is still far from its peak of around 17 million sales in 2007, and could obtain 12.5 million to 13 million in 2010 from a low of around 10 million.
He added that there are a number of economic indicators in the U.S. that should be further reasons to be more cautious. Among these is the unemployment, which has not gone down, as well as the housing market, which has yet to recover.
In a U.S. government report dated July 8, employers in the country are adding jobs at the slowest pace in nine months in June. Also, the unemployment rate unexpectedly climbed to 9.2 percent.