New models hit BMW top gear

German car maker BMW said today that sales hit a record high during 2006, boosted by new versions of its 3-Series models.

The company, which also owns the Mini and Rolls-Royce brands, said sales jumped by 5% to €49bn, up from €46.7bn in 2005, as the group sold more than 1.37 million vehicles worldwide.

Chairman Norbert Reithofer said: “2006 has been the best financial year in the company’s history. We have reinforced our position as the world’s leading premium manufacturer by posting a new record sales volume figure”.

He added he remained confident of posting annual pre-tax earnings figures of €4bn when BMW reports in March, with higher sales volumes and increased operating efficiency offsetting rises in raw material and energy costs and poor dollar exchange rates.

Reithofer added that the group planned to achieve further growth in the year ahead and expected to up sales volumes to more than 1.4 million vehicles.

The group’s capital expenditure increased by 8% in the year to €4.3bn as it invested in new model development and expanded its production network.

BMW sales rose by 5.2% to 1.2 million cars, while the number of Minis sold fell by 6.2% to 188,077 after disruptions at the group’s Oxford manufacturing plant amid building work to increase the plant’s capacity to 240,000 vehicles a year.

The positive update from BMW came hot on the heels of news that Ford had seen its worst ever results in the company’s 103-year history.

The US car maker reported it slumped into the red by $12.7bn (€9.75bn) last year, equivalent to a loss of nearly $4,400 (€3,500) on each car or truck sold.

The group, which also owns Jaguar and Volvo, said that it expects further losses to come before returning to profit in 2009.

Ford said it is rolling out a number of new designs in 2007, such as the redesigned Focus small car, as it attempts to halt its market share decline.

BMW is also releasing new 5-Series and 1-Series models during the next year.