BMW CEO Norbert Reithofer says the company is thinking about raising capability at the Spartanburg, S.C., plant.
Photo credit score: BMW
March 19, 2014 – 6:36 am ET
MUNICH (Reuters) — BMW is seeking at raising manufacturing capability at its plant in the United States and releasing 12 new models as it chases record auto product sales and a rise in pretax profit in 2014, the firm explained nowadays.
BMW’;s plant in Spartanburg, S.C., which has an annual production capability of close to 350,000, tends to make SUVs, such as the X3, X4, X5 and X6 designs.
“The U.S. will remain a industry with fantastic possible for us. This is why we are evaluating the probability of escalating capacity in the U.S.,” CEO Norbert Reithofer mentioned at the company’;s annual outcomes press conference.
Investments produced at plants in China will permit BMW to raise production capability there to 400,000 autos, from 300,000 in 2013.
The owner of the Mini, Rolls-Royce and BMW brands reiterated it aims to attain a considerable rise in product sales volume in 2014, soon after it delivered a record one.96 million autos in 2013.
“We expect group revenue prior to tax to rise drastically in the existing yr, in spite of ongoing volatile organization circumstances,” Reithofer mentioned.
Last week, BMW reported its automotive division’;s 4th-quarter earnings ahead of curiosity and tax dropped 14 percent to one.77 billion euros ($ 2.46 billion), beating analysts’ expectations of 1.68 billion euros.
The forecasts are based mostly on the assumption that political and economic problems remain stable in 2014, and on a steady recovery in European markets, BMW mentioned.
BMW expects considerable growth in markets outdoors of Europe which includes large single-digit growth in North America and low double-digit development in China.
Analysts welcomed the positive outlook.
“We see BMW’;s confidence as a significant good trigger for the stock,” analysts at ISI International stated in a note nowadays.
BMW explained it anticipated income in the second half of 2014 to be increased than in the first 6 months as a outcome of a big variety of model launches, like of the compact 2-series coupe and the 2-series Lively Tourer.
Competitors amongst Germany luxury-vehicle makers is heating up as Audi, which ranks second in the section on an yearly basis, outsold BMW’s namesake brand in the very first 2 months of 2014. Mercedes-Benz, which holds third spot, has boosted deliveries more quickly than the 2 more substantial rivals in current months.
BMW has ramped up spending in current many years to fend off Audi and Mercedes, which the 2 plan to get the luxury-revenue crown by the finish of the decade. The 3 German manufacturers are also dealing with a challenge from expansion by smaller sized producers of upscale autos, such as Jaguar Land Rover and Maserati.
Audi, which has by no means held the top luxury-vehicle revenue post for an whole yr, will introduce 17 new or revamped vehicles in 2014, including a remake of the iconic TT sports car. Mercedes is rolling out 30 autos by the end of the decade, which includes a dozen all-new cars.
Bloomberg contributed to this report.