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BMW Wants Significant Profit Gains in 2014

At the annual ‘state of the company’ press meeting, BMW Group CEO, Norbert Reithofer, talked about ever increasing profits with more than confidence. You could say he was absolutely convinced that this year we’ll be seeing the Germans break the 2 million cars sold record.
Annual BMW Meet 1 photo
And they might very well do it. Over the course of 2013, the Bavarians sold 1.96 million cars, including the MINI and Rolls-Royce numbers. Therefore, with the new additions, significant profit gains could be achieved, as the CEO stated.

With 16 new models planned for this year, 8 of them already revealed (M3, M4, i8, 4 Series Gran Coupe, X3 LCI, X4, 2 Series Active Tourer and MINI Hatch), profits will surely grow, the products offered by BMW appealing to more and more people.

There’s also a matter of pride involved, Audi breathing heavily down BMW’s neck, for the first time in 9 years. The Ingolstadt-based company became the top luxury manufacturer in the world over the first two months of 2014 for the first time in 10 years, selling 383 more cars than the Munichers.

However, Dr. Reithofer didn’t seem impressed at the press conference and said that “[they] will remain the world’s leading premium car company” this year.

Part of the plan to keep on leading the way is increasing production both in the US and China, with a possible new X7 SUV, that would sell by the thousands in North America, taking on the Mercedes-Benz GL-Class, Cadillac Escalade and Lincoln Navigator. "The U.S. will stay a market with great potential for us. This is why we are evaluating the possibility of increasing capacity in the U.S.," Reithofer said.

On top of all this, the research and development spending will be reduced, as the i sub-brand doesn’t need as much financial support as it did before the launch of the i3 and i8. Over the last year, 4.8 billion euros were invested in R&D, more than usual. For 2014, plans are to take the investments lower to around 5, 5.5 percent of the revenue, meaning around 3.8 or 4 billion.

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