BMW to reach sales of two million vehicles: four years ahead of plan
Expanded product portfolio and increased production capacity contribute to the revised target
In its mid-term goal announced in March 2012, BMW aims to achieve a worldwide sales volume of two million vehicles by 2016. It has pushed up its plan by four years as the automaker previously planned to reach this target by 2020.
BMW marked a record high worldwide sales volume for 2011 with 1.67 million units and expects to make a new record for its 2012 year-round sales.
One of the elements contributing to this sales growth is the expansion of its portfolio: BMW launched new sedan and wagon versions of its best-selling model, the 3 Series, and a first of its four-door coupe model under the BMW brand, the 6 Series Gran Coupe. In 2013, BMW will launch replacements for the 3 Series Coupe/Convertible as the 4 Series Coupe/Convertible, and a seventh model under the MINI brand, the Paceman.
As one of its strategies for attaining the sales volume of two million vehicles worldwide, the German company will aggressively launch new models into the premium compact segment where growth is expected. Many BMW/MINI brand models will be built on the newly engineered FWD platform to enhance sales competitiveness in this segment. The sales volume of vehicles under the MINI brand also needs to be expanded. To do so, BMW will expand its production facilities by enhancing the production capacity of its U.K. plant and commission the Dutch company NedCar to produce its vehicles.
By region, the sales in the U.S. and China contrast with the sales in Europe-where an economic downturn due to the regional debt crisis has caused difficulties in sales-and the sales percentages by region during the January to September 2012 period were 18% for China and the U.S. leading Germany by 2% (16%). BMW will strengthen the production capacities of the U.S. and China to further expand its sales. It also has plans to establish a production capability in emerging markets which includes the construction of a new plant in Brazil.
The automaker aims to cut the group CO2 emissions by half from the amount in 1995 in order to conform to the amount set by the European CO2 emissions control standard (95g/km) by 2020. The BMW Group's current average emission is 145g/km. BMW will launch the first of its electric-powered vehicle sub-brand i, the i3 compact EV (electric vehicle) by the end of 2013, and the i8, a PHV (plug-in hybrid vehicle) sports car in early 2014. The company also signed an agreement with Toyota regarding a partnership for eco-friendly technologies. The automakers will co-develop technologies such as lithium ion batteries, fuel-cell powered vehicles, and electrification.
The revenue for the January to September 2012 period was up 11.6% from the same period of the previous year to 56.31 billion Euros, marking its highest for that period. EBIT (earnings before interest and taxes) also marked its highest with an increase of 0.8% to 6.4 billion Euros. The net profit was down 2.8% y/y to 3.9 billion Euros. The year-round revenue and profit for 2012 are both expected to exceed the previous year (announced in September 2012).