BMW’s Chief Executive Norbert Reithofer announced the automaker will reduce discounts in Germany and focus on maintaining profit margins and not market share.
“We have decided that this year in Germany we will not defend market share at any price, and that profitability must come first,” Reithofer told German weekly WirtschaftsWoche.
Therefore the volume of discounts will be reduced substantially and according to Reithofer: “We’re not just talking 5,000 cars.” German automakers often offer dealerships cash bonuses in order to ‘self register’ a purchase by the dealer instead of a real customer. This move is used to flatter total monthly sales.
The current figures show that BMW still holds the no.1 spot as the world’s largest automaker of premium vehicles, surpassing rivals Mercedes-Benz and Audi. Talking about another subject, Reithofer said that BMW must sell a ‘five digit number’ of EVs beginning with 2020 to be able to comply with the European Union emission standard and reach an average carbon dioxide emission level of 101 grams per kilometer per vehicle.
“Our attractive product portfolio continues to be in strong demand right across the globe,” Ian Robertson, BMW’s sales chief, said in a statement. “We are building the vehicles people desire. This puts our record sales target for 2012 well within reach and we will once again be the number one premium car company worldwide.”