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BMW, Porsche eye higher profit despite uncertainty

Tuesday, March 21, 2017 - 01:33

BMW aims to achieve record sales volumes, revenues and earnings this year by ramping up SUV production. As Sonia Legg reports, it's German rival Porsche also expects a jump in profits this year as VW pushes to overcome its diesel emissions scandal.

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It's on the road to record sales volumes, revenues and earnings this year. By ramping up production of its profitable SUV BMW is also able to fund investment in fully electric cars. (SOUNDBITE) (German) BMW CHIEF EXECUTIVE, HARALD KRUEGER, SAYING: "The fully electric drivetrain will be integrated into our core brands: a fully electric Mini in the year 2019 and a fully electric BMW X3 in 2020. Reach will soon no longer be an issue." But BMW's not prepared to commit long term to a British-built electric mini. (SOUNDBITE) (German) BMW CHIEF EXECUTIVE, HARALD KRUEGER, SAYING: "The UK remains an important location for us. Much will depend on how Brexit is ultimately negotiated. At the BMW Group, we are preparing different scenarios. Mini models are also built in the Netherlands. Our production network offers us flexibility." BMW's rival Porsche is also expecting higher profits. They could double this year from 2016 as VW works towards overcoming the diesel emissions crisis. But there is uncertainty. Former VW chairman Ferdinand Piech is in talks to sell his near 15 percent stake in Porsche. Any deal would shake up the ownership structure of the company that controls VW. Piech is the grandson of Ferdinand Porsche who founded the sports car maker under a contract with the Nazis in 1934. Since he resigned as chairman two years ago he's become a recluse.

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BMW, Porsche eye higher profit despite uncertainty

Tuesday, March 21, 2017 - 01:33