Audi beats BMW on first quarter earning
Audi has beaten BMW for their first quarter earnings. BMW have suffered a 3.3 per cent dip. BMW’s quarterly operating margin resulted in full year Earnings before interest and taxes as a percentage of revenue equated to just 11.8 per cent. Audi’s figure was recorded at 12.1 per cent.
The cost of releasing the BMW 3 Series
This was due to the previous generation of the BMW 3 Series losing sales following the arrival of the new generation, which appeared in some major industries including North America in the middle of February. The transition of the changeover meant that BMW suffered from a short term loss. Costs in production and the actual launch are always bound to leave a dent on the bank balance initially. BMW have said that they spent approximately €500 million in the latter part of February on the launch of the 3 Series. The car results in a third of all vehicles that are sold by BMW. The ratio is same in BMW Service as well.
BMW’s investors are said to be not very pleased. Shares dipped and were lower than rival shares at one point.
Audi and Mercedes-Benz expect profits to cool down
Audi and Mercedes-Benz have already come out and said that they do not expect to better profits made last year, which reached record heights. The Chinese luxury market is currently growing helping all three car manufacturers’ record excellent months for January and February but that is expected to die out with profits falling eventually.
Sales volume figure to be broken
BMW have not yet forecasted predictions in terms of profit for the rest of the year as of yet. Norbert Reithofer, the BMW Chief Executive has said that the 1.67 million sales of last year should be eclipsed in 2012. His exact words were “We expect the past year’s record-breaking sales volume performance to be surpassed in 2012,”
BMW profits reached record highs in 2011 as mentioned earlier. Stockholders were paid out €2.30 per share in a profit sharing scheme.
Luxury battle in North America
BMW did manage to beat Mercedes-Benz last year to the top spot of the luxury car sales charts. The battle was intense and very close, with neither giving out results until the latest possible stage. This year in America Audi are expected to put up more of a fight considering their phenomenal growth statistics. Although they may be selling fewer cars than their German counterparts, they are the fastest growing out of all three.