The future of the car manufacturer is electric – and characterized by a focus on luxury.
(Photo: Reuters)
Munich The BMW Group reports record results for the past year 2021. The bottom line is that Munich posted a net profit of 12.5 billion euros, which is more than three times as much as in the previous year. The dividend will also be increased significantly. The group pays EUR 5.80 for the preferred shares.
Most recently, the group had only distributed 1.90 euros per share. The siblings Susanne Klatten and Stefan Quandt, who control around 48 percent of the BMW shares, benefit significantly from the significant increase.
The strong result was evident. BMW benefited worldwide from the recovery of the car markets after the corona crisis. The core brand BMW increased sales by 9.1 percent to 2.2 million vehicles and thus recorded the best sales year in its history. Only the weakness of the small car brand Mini meant that BMW’s sales at group level remained just below the level of 2019.
Rival Mercedes was also able to record the best result ever for 2021 with fewer cars sold. Just like the Stuttgart, BMW draws its high profits from the luxury segment. With the introduction of the giant X7 SUV and the 8 Series, BMW has doubled sales in this extremely profitable business. On the other hand, BMW is less affected by the lack of chips than its competitors Audi and Mercedes.
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While the rivals had to cut back their production significantly, especially in the fourth quarter of 2021, the production lines at BMW stood still much less often. Added to this are the increased selling prices, also for used cars. Unlike before the pandemic, automakers hardly have to give discounts anymore because global demand is greater than supply.
China joint venture is consolidated
BMW wants to continue the luxury strategy accordingly. This year, the group is relaunching the 7 Series, in its most powerful version as a purely electric model. The “i4” and the “iX” are also coming onto the market electrically, and BMW is planning a dozen electric cars by 2025. From 2025, BMW intends to change its technical focus to electromobility. However, the group does not give a specific date for phasing out the combustion engine.
The most important market is China, where BMW sells almost every third car. On February 11, the group increased its stake in the production joint venture with Brilliance from 50 to 75 percent. This makes BMW the first foreign car company to be allowed to take over a majority stake in a company in China. With the consolidation, BMW will post significantly more sales and earnings in the first quarter of 2022.
In the medium term, the China share at BMW will continue to increase. According to company circles, the production of the X5 SUV from the US plant in Spartanburg is partly relocated to China. In addition, BMW is significantly expanding its research and development capacities in China.
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