GERMANY: BMW ahead of five year plan - chief
BMW would beat its targets for reducing expenses by 2012 and new models would give a "major boost" to sales, chief executive office Norbert Reithofer has said.
He told Bloomberg Television that BMW anticipated a gradual improvement in monthly sales as demand recovered after the financial crisis and that the company was "100% on track" to save EUR500m (US$730m) this year from earlier job cuts.
Reithofer added that BMW would exceed its five-year plan announced in 2007 to cut annual spending by EUR6bn (US$8.7bn) by 2012. He also predicted an improvement in sales next year.
"2010 will go up, not fast, but we will see a better situation. In 2011, from an economic point of view, we will be through the financial crisis."
BMW is introducing new models such as the X1 compact sport utility vehicle and the 5 Series GT crossover (five-door hatchback) this year. New versions of the 5 series in 2010, 1 in 2011 and the 3 in 2012 would refresh about half of BMW's model lineup.
The carmaker sold 91,790 vehicles in August, 9.7% fewer than a year earlier, and an improvement over declines of 13% in July and June and the 18% plunge in May.
Last month's sales were boosted by a 3.5% increase in Germany, led by a 20% gain for Mini.