BMW’s strong sales of luxury vehicles in China help the automaker make up for the loss in Europe.
BMW’s net profit increased 16% in the third quarter reaching €1.29 billion ($1.65 billion) and sales were up 13.7% reaching a record profit of €18.82 billion. The automaker announced today, October 6th, it is on track of reaching the 2012 forecasts for earnings and sales, despite the uncertain market environment.
Due to increased sales of the X5 SUV and the 5-series sedan in China, BMW managed to make up for the loss in the crisis affected Europe. Sales in China increased 30%, while in Europe sales rose only 2.6%. In Germany, the automaker’s home market, sales were down 0.5%. BMW’s strong presence in the US and Asia helped the company overcome the stagnant European market, where figures to be presented next week are expected to show that the eurozone is back in recession.
If some automakers chose to close plants and lay off employees, other to cut production in Europe, BMW chose to focus on selling luxury cars in markets where profits per vehicle are higher. For the Jan-Sept period sales of the X3 SUV increased 28.7% and the 5-series saw a rise of 5.3%.