BMW announce record profits for 2011
Full year operations in 2011 have resulted in record profits for BMW. The news has been published across the automotive media stating that Chinese sales helped boost company earnings by a significant amount.
Profits have increased by 51 per cent in 2011 with £4.1 billion earned which beats the £2.71 earned in 2011. Sales of BMW cars have risen by 14 per cent resulting in £57.7 billion.
Better than expected
BMW Chief Executive Norbert Reithofer said that the results represent some sense of overachievement as records were broken for sales, revenue and profit. Who said there was an automotive industry crisis?
Mr Reithofer official statement read “The past year has been the best year in the BMW Group’s corporate history. We have achieved new sales volume, revenues and earnings highs, and exceeded our targets.”
Success in China
The demand for luxury SUV’s in China has increased by a significant amount recently. BMW took full advantage becoming one of the market leaders selling a great amount of BMW X5’s and X3’s. If there was one market where you want to see growth and success, it would be China. It is the world’s largest automotive industry and is continuing to show signs of growth this year.
Mercedes-Benz have also seen huge profits being made thanks to a successful 2011 in China, again taking advantage of the luxury car boom. Many want to show off their wealth in the country, what better way to do that than to own a luxury vehicle.
A good chunk Volkswagen’s profits were down success in China too as well as Europe and North America. They are on track to reaching their 2018 goal of becoming the world’s largest car supplier.
BMW vs Mercedes-Benz
BMW’s battle with Mercedes-Benz in America was also a major factor in the company achieving record profits last year. BMW achieved a higher number of sales but only by just. Having healthy growth rates in the world’s two largest car markets was a great way to achieve record profit.
Sales of the luxury and lengthy BMW 7 Series model increased by 4.5 per cent with total sales resulting to 68,800 units. Being an expensive model, profits were driven up by sales of this particular model. The BMW X3 had doubled the amount of sales in 2011. BMW’s Rolls-Royce brand saw individual sales rise by 30 per cent in 2011, selling 3,538.
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