BMW GROUP REPORTS RISE IN PROFIT

BMW Group Cars

The BMW Group reported a drop in profit for the first nine months of 2017, due, according to the company, to extensive investments. It reported a Group net profit of €6.1 billion (about R100 billion) from revenues of €72.6 billion (R1.2 trillion). During the third quarter of the year (July to September), net profit was €1.789 billion (R29 billion).

 

This money comes from a Q3 rise in vehicle deliveries, which amounted to 590 415 units of BMW, MINI and Rolls-Royce branded cars. From January to September, a total of 1 811 234 cars were delivered to customers globally. Of these, 1.5 million were branded BMW, 270 000 were MINI, 2 343 were Rolls-Royce and 127 000 were motorcycles from Motorrad.

 

At that rate the BMW Group is probably looking to end the year with around 2.4 million worldwide sales. This would compare favourably with the 2016 figure of 2 million. This year has seen the unveiling / introduction of some “big” as well as specialised models, including the 5 Series (including king M5), 6 Series GT, M4 CS, Phantom, MINI Clubman and Countryman JCW, and the all-new X3 among others. The plan is to introduce a total of 40 new or updated models up until the end of 2018, including the likes of the new 8 Series, X2 and X7, as well as special models like the M2 CS.

 

“Sustainable profitability remains a key element of Strategy NUMBER ONE > NEXT by providing us with the underlying strength to help shape mobility of the future. Significant upfront investment on research and development is therefore necessary, both now and in the coming years,” explained Nicolas Peter, Member of the Board of Management of BMW AG, Finance. “We are investing extensively in the future of the BMW Group and rigorously following a strategy of achieving success on a sustainable basis. To this end, we are systematically reducing process and product complexity on a daily basis and optimizing our product and service range to meet the needs of customers. In this way, we will ensure the consistency and reliability of the BMW Group.”

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