The world’s largest luxury automaker, Germany’s BMW AG, had a first quarter profit performance that showed some weak points – with the growth coming from one-time factors such as currency tailwinds rather than the company’s strategy for performance.
Naturally, since we’re talking about one of the major powerhouses in the automotive industry, BMW investors expect such surface performances to also be one-time occurrences, rather than a habit – after all, the other two German premium rivals are just waiting for any mishap on their behalf to immediately take charge and try and pass them. Shareholders are still relaxed, with analysts and industry experts expecting that any short-term performance issues to be shed once the rather ageing top of the line portfolio is renewed. On the pipeline today sit the new 7 Series flagship, midsized 5 Series sedan and X1 crossover. And reports are pouring in that BMW is planning a new small, coupe-styled sport utility vehicle, the X2, to complement the niche lineup consisting of the X4 and X6 models, with the new addition coming on the market around 2017.
The experts are more concerned on the longer-term prospects. The currency gains are unlikely to last forever, with the sharp drop of the euro on foreign exchange markets bound to stop at any given time, most likely sooner than later. Another worry is the performance of the Chinese market, where the massive double-digit delivery gains have slowed and so are the associated hefty profits. Also, third largest luxury automaker in the world, Mercedes-Benz, has managed to achieve for the past few months a superior performance, outgrowing both BMW’s and Audi’s rates.