Think the China market is flying? Try Brazil, where BMW sales rose 50 percent in the past year.
As a result, BMW is looking for a site to build a new factory in the South American country, according to Automotive News. The new plant will help the company sustain global sales growth following record deliveries in 2011. This year, BMW sold nearly 1.6 million vehicles and according BMW CEO Norbert Reithofer, the automaker aims to sell 2 million cars every year by 2020.
“We are better prepared for a potential crisis” than during the 2009 recession because of lower production costs and a better financial cushion, Reithofer said. He said that profit in 2011 will “rise significantly” to a record and that earnings before interest and taxes will amount to at least 10 percent of sales.
With the introduction of the new 3 Series sedan in early 2012, the company anticipates increased sales in U.S., China and Europe. Reithofer says that Chinese consumers drive about the same number of economy cars as Europeans, but the difference is that 75 percent of Chinese economy car owners want to upgrade for their next purchase.––Paul Duchene
