[who's ur daddy?]

I recall someone posting about how BMW would miraculously survive and pointed to the increase in sales...lol.

The only reason BMW is even selling any cars these days is because of the drastic discounts they are offering. No different than Best Buy having good sales revenue, but terrible profit.

Tis the sign of the times. The beloved propeller is no different than any other car brand in this economy...

[tirana]

Compared with the big three, BMW and Porsche have a future. Chrysler is a deadman walking and GM will have to shrink its production by at least a third to have any chance at viability. There's just too much uncertainty, but as the economy bounces back in a couple of years, the D3 will have ceded a lot of their low-end to the Koreans and the high end to the europeans. Sucks to be an employee of a US based car maker in Ontario

[scooby9]

Damn that sux, I guess no car company is immune to a downward spiraling economy...

[trickydisco]

BMW Sees Growth in Premium Area Despite Slump


MUNICH -(Dow Jones)- BMW AG (BMW.XE) said Thursday the premium segment has growth potential in coming years despite the collapse in demand for luxury cars due to the recession, adding that it plans to resume two-shift operations at its Leipzig plant in June due to strong demand for the compact 1-series model.

"The market for premium vehicles will continue to grow over the medium to long term," BMW Chief Executive Nobert Reithofer said at the Munich-based automaker's annual general meeting, according to a prepared statement.

BMW's car sales fell 21% on the year in the first quarter to 277,264 vehicles. The world's best-selling manufacturer of premium cars slashed first-quarter production 34% to 267,637 cars, to avoid the buildup of inventory.

German rival Audi AG (NSU.XE) in April continued to narrow the sales gap to its two larger peers, BMW and Daimler AG's (DAI) Mercedes-Benz brand, driven by new models and a favorable regional sales mix. However, overall demand for luxury cars deteriorated further due to the economic downturn, with the timeframe for a broader recovery still uncertain.

BMW said it weathered the storm better than the overall market in the first three months of the year and for the first time outsold Toyota Motor Corp.'s (7203.TO) Lexus brand in the U.S. Reithofer said there is "still enormous potential on the U.S. market."

The dramatic fall in demand for new cars in North America has been a major concern particularly for BMW as the U.S. is the company's biggest single market.

Reithofer reiterated that BMW's sales momentum is expected to be fueled between 2010 and 2012 through the launch of several important new or revamped models such as the X1 sports-utility-vehicle or the 5-series Gran Turismo. BMW targets a return on capital employed of more than 26% and a margin on earnings before interest and taxes, or EBIT, in its auto segment of between 8% and 10%.

Reithofer confirmed that BMW will "considerably exceed" its 2012 target of cutting material costs by EUR4 billion.

"We will be launching the first megacity vehicle with a fully electric drive or an ultra-efficient combustion engine by the first half of the next decade," Reithofer said, adding that this vehicle will be part of a new family of extremely low-emission vehicles.

Reithofer rebuffed calls for a merger or closer tie-ups with other automakers to create economies of scale. Automakers are currently being squeezed by eroding demand at a time when expenses for research and development are rising amid tighter emission regulations worldwide. "Size is no guarantee for success," he said. "We will continue to chart our own course in the future - on our own and independently," Reithofer said, adding that "the economic crisis is not the first performance test for the BMW Group".

"Cooperations will remain an integral part of our strategy, but not at the expense of our independence," he said, noting that any cooperation needs to be mutually beneficial.

Reithofer confirmed that the cooperation with Daimler on purchasing parts and components will be extended.