BMW has seen its profits leap by 60 per cent for the second quarter and, with the introduction of the Mini and the forthcoming 7-Series, sales are likely to continue to soar.
BMW has seen its profits leap by 60 per cent, proving that its luxury cars are still popular across the world.
The German manufacturer announced that net profit for the second quarter was R3,6 billion, up from R1,6 billion a year earlier, while pre-tax profit was at R5,9 billion – a 60 per cent improvement.
The growth has been attributed to huge sales of the X5, continuing demand for the 3-Series and dumping the struggling British Rover unit.
Sales are likely to continue to improve with the recent launch of the Mini and the forthcoming 7-Series, although there is also the cost of such launches to factor in. BMW said it expects to sell more than 900 000 cars this year.
BMW was forced to add extra shifts at its German plants – with the exception of Dingolfing near Munich – to meet increased demand. This was particularly necessary in the US, where first-half sales jumped 21 per cent to 107 300 vehicles. BMW has hired 2 000 additional workers in Germany this year.
The company announced last month that BMW sales had increased by nine per cent in the first half of the year. This means the sale of 459 800 vehicles. The German market dropped by 3,5 per cent for the first half of the year.
“Due to very pleasing operating developments, BMW believes that even in this phase with high costs for product and brand offensives, the BMW automobile segment will again reach the excellent result it had in 2000,” it said in a statement.
BMW also performed strongly in the United States, with July sales growing by 25,6 per cent. It beat Mercedes Benz’s 5,7 per cent and Volkswagen’s 6,2 per cent sales increases.