GERMANY: BMW to hike targets
BMW is expected to agree higher sales and profit targets at today's (27 September) supervisory board meeting.
A spokeswoman told just-auto there would be a press conference in Munich this afternoon where chairman Norbert Reithofer would announce "a strategic realignment for BMW Group" but was unable to provide further detail.
BMW stocks have been rising this morning in anticipation of the new strategy announcement.
Soon after 10am, shares had risen 4.07% to EUR48.58, according to news agency dpa-AFX.
Several banks have changed their recommendations from 'hold' to 'buy', including Deutsche Bank, which is expecting the announcement to include a new focus on cost reduction and big changes to the company in the next few years.
Yesterday, Germany's Capital magazine said Reithofer would present a new long-term strategy targeting sales of 1.6m units by 2009, a year earlier than previously announced. This is up from 1.37m sales in 2006.
BMW would not confirm the report yesterday.
The magazine added that BMW is planning sales of 1.8m by 2012. To reduce the risks associated with the low value of the dollar, the automaker is planning to increase production at its US plant in Spartanburg from 160,000 to 250,000 units.
The target for return on sales is expected to be increased to more than 8% by 2012, up from 6.3% in the last financial year. Return on capital will be targeted at 26%, up from 21.7% a year ago.