Despite impressive results of BMW in October 2011, the company is unlikely to become this year's profit leader.
In October, BMW sold 115,136 vehicles, which is a 6.8% rise over the same period a year earlier. According to Automotive News, the sales are boosted by demand for the X3 crossover and the 5-series sedan. The automaker reported that sales of the 5-series increased to 25,000 units (up 10.8%) in October, and sales of the BMW X3 reached 10,949 vehicles. The overall result is not that encouraging though.
As the sales growth slowed to 9% in Q3 from 18.5% in Q2, the company lost its profitability lead in the high-end car segment, passing the crown to Audi. The Munich-based company is also spending around 500M in the second half of the year to introduce its next-generations of the 3-series sedan and 1-series compact, which is supposed to eat the earnings. In addition, earnings may further be eroded by the slowing demand for luxury cars. The manufacturer still hopes that the overhauled models will help them to maintain the leading position. And even though BMW's profit lead is uncertain for now, the company will keep the sales lead with the 1.3M vehicles (15.2% up) after the first 10 months of the year, compared to Audi's 973,200 units.