Even though it is unbelievable, but is true that the two German rival luxury car companies that is BMW and Mercedes-Benz are working hand in hand for some very important purpose.
Well, the purpose is just that the two companies can now be seen together to cut the costs by at least 4 billion euros till the end of 2012. This mind-boggling news has come straight from the BMW AG purchasing executive Herbert Diess.
As the target of saving 4 billion euros has been planned, Diess is confident that they can easily save more than what they have set by the end of 2012. BMW is trying to save as much money as possible and its courage are a consequence of pressure that could be sensed from its two major rivals in the premium car segment that is Mercedes-Benz as well as Audi. With the announcement that the brand is on track to save $5.2 billion, it has also said that they were able to do this partially because of a partnership with its rival Mercedes-Benz.
As reported by the Bloomberg, the news has also come into way that the largest luxury automaker in the world, has announced “it is on track” and is not only meeting its goal of saving the planned target, but will significantly exceed its goal.
Herbert Diess said that we could say that from today’s perspective we will certainly and easily reach the 4 billion euro savings goal, and even significantly surpass it. His comments come after the brand that has announced its first-quarter net income, which is of $417 million by beating the predictable earnings of just $340 million. All of these profits signify a rise of $196 million than that of the same quarter in the year 2009. BMW features few of its augmented profits, as the demand for 7-Series sedan is strong, and also the cost savings attained gratitude to a partnership along with Mercedes-Benz.
Well, BMW and Mercedes-Benz have worked hand in hand during the first quarter in the year 2010 that is anticipated to trim down the costs for both automakers by some $129 million each year until 2012 as per Diess. As BMW is striving hard to fulfill its goal, the luxury car unit of Volkswagen AG is also looking forward to acquire the crown of being a premium market leader from BMW by the end of the year 2015. Taking some of the steps that could lead to success and make some more profits, BMW is introducing some of its new models.
The models that are been introduced are the new 5-Series, MINI Countryman, and many electric urban vehicles. In addition to this, the brand is coming up with the front-wheel drive models and their target is just to sell as much as vehicles with the set target of 2 million by 2020. In 2010, the selling target is of 1.3 million vehicles.