BMW predicts record sales as it unveils new models

Stuttgart: Bayerische Motoren Werke AG, the world's largest maker of luxury vehicles, predicted record sales and profit in 2012 boosted by eight new and updated models.

The maker of the Z4 roadster stuck to its target of beating last year's record earnings on higher deliveries and the auto unit generating a margin at the "upper end" of a range of 8 per cent to 10 per cent, chief executive officer Norbert Reithofer said yesterday.

The Munich-based company reported earnings before interest and taxes of 11.8 per cent from vehicle sales last year.

"These targets are based on the assumption that the underlying economic conditions remain stable," Reithofer said in a speech at the company's annual shareholder meeting.

"The high level of public debt in some countries and the euro crisis harbour ongoing risks for the global economy."

Competition

The car and motorcycle manufacturer is expanding to fend off efforts by Volkswagen AG's Audi and Daimler AG's Mercedes-Benz to grab the sales lead in luxury autos by the end of the decade.

The maker of BMW, Mini and Rolls-Royce models expects higher sales at all its brands, pushing pretax profit higher, Reithofer said yesterday.

First-quarter profit beat analyst estimates, with ebit climbing 19 per cent to €2.13 billion (Dh10.02 billion), BMW said on May 3.