BMW sees 5 Series, new X2 fuelling sales increase

Bloomberg

BMW AG is betting an overhauled 5Series sedan and new X2 crossover will boost sales this year as the world’s second-biggest luxury carmaker works on its pledge to retake the global lead from Mercedes-Benz.
Those models, plus an updated X3 utility vehicle, should carry BMW to gains in all markets, including the US and China, Chief Financial Officer Nicolas Peter told reporters at the North American International Auto Show in Detroit.
Chief Executive Officer Harald Krueger told shareholders last May that BMW is going into “attack mode,” with a two-year record rollout of new and revamped models to overtake to its arch rival.
That contrasted with a prediction for a “slight” increase in sales for 2017, when deliveries at the namesake brand ended up rising 4.2 percent to almost 2.1 million vehicles, and lagged behind a 9.9 percent jump for Daimler AG’s Mercedes.
BMW is starting deliveries of the all-new X2 and full-size X7 sport utility vehicle this year as it seeks a spark after two years of trailing Mercedes.
The slip into second place and a downgrade to expected 2017 auto revenue has put Krueger under pressure as he balances sales success with profitability while making the costly jump into the industry’s electric powered robo-vehicle era.
Krueger, who took charge in 2015, changed tack following a low-key approach in the early part of his tenure. In addition to plans to offer at least 12 electric cars by 2025, the carmaker is also expanding its suite of high-end vehicles.
Munich-based BMW, like other industry players, is fighting to boost profitability to cover climbing investments in the shift to new forms of driving and standing its ground against newcomers such as Tesla Inc. and Alphabet Inc.’s Waymo.
BMW’s development spending will rise to as much as 7 percent of sales this year, from 6 percent in 2017 and a typical level of about 5 percent, Peter said.