German automaker BMW expects significant profit this year as demand for its 4-Series Gran Coupe continues to increase.
The world’s biggest luxury automaker said that pretax profit in 2014 will surpass the $11 billion profit in 2013, achieved by 16 refreshed and new models and also a decrease in capital expenditures. BMW expects stronger sales during the second half of the year, and this will help the automaker keep its position as the best-selling upscale automaker.
“We’re viewing the business year 2014 with confidence,” said Chief Executive Officer Norbert Reithofer during a press conference at BMW’s headquarters inMunich.
Competition among the German luxury automaker becomes tougher and tougher as Audi, Volkswagen’s luxury automaker, which currently is on the second place, has managed to outsell BMW during the first two months of this year. Mercedes-Benz, Daimler’s division, currently on the third place, has increased sales faster than its two competitors over the past few months.
In 2013 BMW invested around 6.3 percent of its revenue to increase production capacity and add new models. This year the company’s investment target is in the ranger of 5-5.5 percent, according to Chief Financial Officer Friedrich Eichiner.
Audi plans to 17 revamped and new models by the end of this year, among which the famous TT sports car, Mercedes will release 30 models by the end of this decade (12 all new models) and BMW has already introduced the upgraded X5 SUV and this year will add the i8 plug-in hybrid sports car, the 2-Series Active Tourer hatchback and the new 4-Series Gran Coupe.