BMW sees profits surge in 2014
Luxury German car manufacturer BMW has lowered its expectations for car sales this year, despite recording high profits so far; instead, the group is sticking to its original goal of selling over two million units, which would be an extremely satisfying increase on 2013.
When asked to clarify the company's position, Friedrich Eichiner, the chief financial officer, said that the company foresees a "solid" sales increase, which is less than a "significant" increase in the high single-digit to low double-digit range.In comparison to its competitors, which include Audi and Mercedes, BMW has a wider range of SUVs. The SUV market accounts for 30% of BMW's total sales and is a major reason why the company can stay ahead of the pack as the world's top-selling premium car manufacturer.
In 2013 BMW sold a staggering 1.65 million units internationally, with Volkswagen Audi in second place with 1.57 million and Daimler in third place with 1.47 million, selling Mercedes-Benz-branded units.
Over the last quarter BMW-branded sales figures increased by 6.9%, driven by the demand for the X5, X4 and X1. This lifted the group's quarterly earnings before tax and interest to €2.26bn (£1.77bn).
With the sale of electric cars hindered by restraints on production, which limited supplies, expenditure on this new technology is high; however, with lowering CO2 emissions a major driving factor, this is a problem faced by both BMW and its competitors.