Photo: bmw
So... SUVs are hurting BMW, huh? Cars like the X4 and X6 are stupid, right? Well, as it turns out, they’re not. BMW revealed their third quarter results and things are looking great thanks to the SUV side of the business and nothing else.
The German group’s EBIT (earnings before interest and tax) rose no less than 17 percent to €2.26 billion ($2.83 billion) and it wasn’t thanks to the 3 Series or 5 Series or the M models. It was due to the surge in demand for SUVs that managed to compensate for the less than impressive (downright disappointing) results posted by MINI.
As you probably know, the British cars have taken a huge blow once the new models came out. At first, it was expected for such a downturn to take place, as the generations swapped places but things aren’t showing any sign of change lately.
Getting back to the matter at hand here, BMW claims that the profitability of the automotive division widened to 9.4 percent of sales compared to 9 percent in 2013, overtaking Audi with 9.2 percent and Mercedes-Benz with 8.5 percent.
"We continued to perform well in both the third quarter and over nine-month period within an increasingly challenging environment," CEO Norbert Reithofer said in a statement today.
This all comes in hand as BMW wants to break a goal set initially for 2016 and then moved back to 2014. The Germans aim to break the 2 million cars sold barrier this year and they are getting extremely close to it.
Over the first nine months of the year, 1.53 million cars were sold, leaving less that 25 percent of the goal to be achieved in the last 3 months of 2014.
The biggest jump was recorded by the new X5 that saw an increase in demand of 34 percent. With new models such as the 2 Series Active Tourer and the 2 Series Convertible, things might just work out by the end of December.
As you probably know, the British cars have taken a huge blow once the new models came out. At first, it was expected for such a downturn to take place, as the generations swapped places but things aren’t showing any sign of change lately.
Getting back to the matter at hand here, BMW claims that the profitability of the automotive division widened to 9.4 percent of sales compared to 9 percent in 2013, overtaking Audi with 9.2 percent and Mercedes-Benz with 8.5 percent.
"We continued to perform well in both the third quarter and over nine-month period within an increasingly challenging environment," CEO Norbert Reithofer said in a statement today.
SUVs are the driving force behind these results
As we said, the strong demand for the BMW X1, X4 and X5 SUVs drove the BMW brand cars sales up by 7 percent. Therefore, the group’s revenues increased in the quarter by 4.5 percent to €19.6 billion.This all comes in hand as BMW wants to break a goal set initially for 2016 and then moved back to 2014. The Germans aim to break the 2 million cars sold barrier this year and they are getting extremely close to it.
Over the first nine months of the year, 1.53 million cars were sold, leaving less that 25 percent of the goal to be achieved in the last 3 months of 2014.
The biggest jump was recorded by the new X5 that saw an increase in demand of 34 percent. With new models such as the 2 Series Active Tourer and the 2 Series Convertible, things might just work out by the end of December.
Google News