Given the company’s ever constant presence at the top of the luxury car market pile you’d have to admit that BMW knows a little bit about finances.
So what do they have to tell us right about now on the sales and profits fronts? Well, something rather unexpected.
The Bavarian company’s economic leaders have come forward to Reuters about the ongoing competition in their segment and the way incentives play through.
At the moment the world’s markets are steadying out and going for the rise. Well at least most of them are and in the meantime Europe is still a cause for concern.
Friedrich Eichiner, BMW’s finance chief says that due to the pressures Europe, particularly the countries where the economy is at risk, the incentive wars will rage on.
There’s not only the guarantee of incentive battle to keep on going, there’s also the matter of not having a predictable end.
Despite this, Eichiner claims BMW is more than prepared to go to war. After having registered an amazing year in 2011, the company’s financial service has rounded up some interesting numbers as well.
Last year they reserved a risk provision of around 100 million euros in preparation. Most of the funds are likely to go to the eastern part of Europe if economies don’t keep on growing path over there.
In conclusion, there was a little bit of bragging. As proof of how well BMW understands the changing luxury car market they’ve announced a trivia figure for 2011.
Last year BMW registered $4.12 billion earnings before interest and tax. Even for a big car maker, that’s quite a lot of money.