Affluent Chinese consumers have been purchasing BMW vehicles in the past year. BMW has reported that their net profit grew by $1.22 billion since last year. The auto maker increased the profit margin on its cars to 7% from being 5% in past years.
These profits have been a result of streamlined cost structures as a result of the market decreasing last year. The company has a target sales of more than 1.4 million cars this year. Sales are up by 13% compared with the same period last year. BMW has claimed, “It expects sales momentum to continue in the fourth quarter with robust growth in the double-digit percentage range” (The New York Times). This confirms how BMW expects growth to continue at a steady rate until the end of the year.
BMW has seen great improvements in the sales of their vehicles in China due to their release of the 5 Series Touring and the Mini Countryman. Soon, the new BMW X3 will be on sale, which has shown positive feedback as a result of many orders for the vehicle in dealerships. I expect BMW to perform well in the future, but this is variable because of the economy. BMW will have to focus on the growing Chinese market as the U.S. market still recovers from this recession.
Source:
http://online.wsj.com/article/SB10001424052748704462704575591660311662990.html?KEYWORDS=auto+industry
I think that BMW's sales can only go up from here. I understand they we are still experiencing recession, but our economy is improving greatly. Also the fact that they are global is a huge help because selling cars in China is also really helpful. I predict that if they continue to focus on China's helpful market, as they keep a close watch on the Us's their sales will continue to improve, and overall BMW has nothing to worry about.
ReplyDeleteBMW sells will continue to rise. This vehicle is known worldwide and many people have shown a great interest in the automobile. Yes, there are many financial issues that are taking place throughout the world, but I see no cease in sales anytime soon.
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