Report: BMW expanding model ranges to boost annual sales

Article by Christian A., on September 8, 2010

As part of BMW’s strategy to fend off Volkswagen AG and Daimler AG, it will expand its BMW and Mini model ranges. BMW, the world's largest maker of luxury vehicles, also aims to boost annual sales 55% in the next decade.

CEO Norbert Reithofer said that to reinforce long-term growth, the company may require a new factory and expansion of existing facilities.

From 1.29 million last year, BMW has set a target to sell over 2 million vehicles by 2020. At BMW’s Munich headquarters, Reithofer said that the “big push” in new models to enter new segments comes after 2012. Reithofer said that in planning for 2020, it will have to consider additional capacity.

He said that BMW intends to widen the 6 series and Mini model lines as well as produce a battery-powered car for city driving. BMW is preparing for the onslaught expected as Volkswagen merges with Porsche Automobil Holding SE. Meanwhile, Audi has set its own target to overtake BMW as the leader in luxury vehicles by 2015.

In 2005, BMW claimed the top spot from Daimler's Mercedes-Benz. Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler, said that if BMW doesn’t attack, it risks being on the defensive. However, he thinks that BMW can meet its targets because it has the “right mix of caution and controlled offense.”

After rolling out the new two-door model next year, Reithofer intends to add a four-door version of the 6-series luxury coupe. He also plans to launch new front-wheel-drive technology to the BMW brand, ending the nameplate's exclusive use of rear-wheel powertrains. This is proof of BMW’s decision to expand its compact vehicle offerings.

Reithofer added that BMW is working on various ideas to attract new customers with fresh small-car models. Reithofer took over as CEO in September 2006 after managing production for six years.

The executive, who has one year left on his current contract, has cut jobs and set a target to cut over 4 billion euros from buying outlays to increase auto profits. [via autonews - sub. required]

Topics: bmw, lineup, sales

If you liked the article, share on:

Comments

Recommended

Bimmerpost has posted several cool pictures of the new BMW G30 540i and the new G31 generation BMW 5-Series Touring, with both wearing the brilliant Rhodonite Silver Individual colour. The...
by - October 23, 2017
A few years ago, Lotus tried to take on Porsche. They had a five-car plan to go against competitors like Ferrari and Aston Martin. Though it did not go well,...
by - October 23, 2017
To keep the Nissan Maxima interesting, the Japanese automaker gives the 2018 model year a number of small tweaks. Some of these include standard Android Auto, which is a new...
by - October 23, 2017
It looks as if Chevrolet has everything planned out in terms of production. Firstly, they have plans of introducing the Corvette ZR1 in a few months, which will then be...
by - October 23, 2017
While Tesla Motors continues to struggle with regards to the assembly of its much awaited Tesla Model 3, investment firm Oppenheimer & Co. is confident that its previous production estimates...
by - October 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries