Auto Industry
March 11, 2010
In a sign that people are choosing to buy smaller, cheaper cars, BMW has reported that net profit in 2009 fell to 210 million euros ($287 million).
The Munich-based company and the world's biggest luxury car maker earned 330 million euros in net income in 2008, so income slumped by 36.4 percent in 2009.
BMW said the decline was due to lower demand for cars during the economic downturn and effects such as a higher tax rate.
Looking forward, however, BMW predicted a rise in sales in 2010 by 50,000 vehicles, taking their production total to 1.3 million.
"We are prudently optimistic for the current year," CEO Norbert Reithofer said.
Although the global economic crisis sent unit sales plunging by 12.6 percent last year, BMW fared better than rival Daimler. The maker of Mercedes Benz cars posted a 2009 loss of 2.6 billion euros.
cb/AP/AFP
Editor: Jennifer Abramsohn