BMW's First-Quarter Profit Plunges 38 Percent!

I think main reasons are flat sales and low lease rates.

— SupraNeverBack (View Profile)

Posted on 5/3/2007 1:11:53 PM | reply to this comment | Votes: 2   

How many more anti-bmw & pro-lexus posts can a website have? This is ridiculous. Is autospies funded secretly by Lexus? must be. People stop with the lease programs and such. There is NO special incentivised lease program for the 2008 5-series, 2007 7-series, 2007 X5, 3-series coupe or conv, 2007 328xi or 2007 335xi sedan, 2007 650 conv ... That pretty much covers 90% of the BMW product line. The programs over the first quarter of the year were to help clean out the 2007 5-series and such. Also, it costs money to introduce new models into the market. BMW in the last year has introduced a new 3-series coupe, 3-series conv, X5 & a redesigned 5-series .......

This is site is so biased it is ridiculous.

— BMW4me4ever (View Profile)

Posted on 5/3/2007 2:32:28 PM | reply to this comment | Votes: -7   

How is BMW losing profit dramatically related to this site being biased?

Euro users flashing the "biased" card to divert attention away from facts. Common practice here.

— Will_ (View Profile)

Posted on 5/3/2007 2:54:32 PM | reply to this comment | Votes: 5   

The facts are that whether you Lexus fanboys like it or not, BMW is # 1 in North America for the second str8 month ... Lexus is number 2 ... awe

— BMW4me4ever (View Profile)

Posted on 5/3/2007 3:05:59 PM | reply to this comment | Votes: -2   

what evs the 335 is still pretty bomb

— AMGC55 (View Profile)

Posted on 5/3/2007 3:20:17 PM | reply to this comment | Votes: -1   

Stop your bitching and complaining unless you own BMW stock. It just the fact, accept it, business goes up and down.

— Lexus (View Profile)

Posted on 5/3/2007 6:37:38 PM | reply to this comment | Votes: 2   

BMW4,
When the posted the original article a few months back, I (and other posters) noticed the one time sale of the RR investment.
Ignore the 38% drop, as you can play with figures. What you have to focus on is the profit minus the RR sale and it shows BWM's sales went up, but their profit stayed the same.

Last summer we had this discussion too. BMW sales jumped 10% yet their profit didn't move.

— huu76 (View Profile)

Posted on 5/3/2007 10:58:27 PM | reply to this comment | Votes: 4   

Good news.

— jon21 (View Profile)

Posted on 5/4/2007 11:50:20 AM | reply to this comment | Votes: 2   

Maybe the analysts were right- Audi will have higher profit by the end of the decade.

— S4cabriofoxone (View Profile)

Posted on 5/4/2007 2:29:08 PM | reply to this comment | Votes: 2   

Ha! What, do you think now that Porsche owns them, their profit will go DOWN? You are a joke.

— S4cabriofoxone (View Profile)

Posted on 5/6/2007 1:01:09 PM | reply to this comment | Votes: 1   

Right on so many levels.

— huu76 (View Profile)

Posted on 5/4/2007 9:13:41 PM | reply to this comment | Votes: 1   

Take a look at their financials more closely.

BMW is expanding their lineup. That means they need to buy more factories, hire more people and ramp up. That takes 5 years before profits on those costs are regained.

Since sales are up, this means that if BMW can maintain the same % of profit on upcoming new models then this will simple equate to soaring profits 5-7 years down the line.

— indoctrin8ed (View Profile)

Posted on 5/4/2007 11:42:11 PM | reply to this comment | Votes: 1   

What new factories are they building for what new models? The new X5 and Z are built in the same US factory as the old ones (the X6 if it comes out, will be built there too). BMW has now new costs (factories), and if they did, E.European factories and labour are so cheap, costs should be covered in a year.

Do you know how long it takes to build a factory? BMW profits have stagnated the last 2 years, and it looks like they'll be making it a hat-trick this year.

Love how they try to blame higher material costs, like the US/Japan buy their metal and stuff from another planet.

— huu76 (View Profile)

Posted on 5/5/2007 1:14:52 PM | reply to this comment | Votes: -1   

Is everyone in India going to be paid $30/hr US? Austria falls into the cheaper E.European labour category. Why doesn't BMW open another N.American plant? About Dingolfing, expansion is cheaper than building.

If BMW's from India are sold here, what a joke.

Profit per car should be going up due to economies of scale and greater purchasing power for materials. It appears giving incentives has negated this.

— huu76 (View Profile)

Posted on 5/6/2007 8:56:57 PM | reply to this comment | Votes: 0   

Huh76: "Profit per car should be going up due to economies of scale and greater purchasing power for materials. It appears giving incentives has negated this."

Oh really? Can you show me an analysis that suggests BMW has given incentives that have negated cost per car, that otherwise would have been offset by such economies of scale?

Huh76 appears to act like he thinks he has read and understands the complex inner workings of a BMW financial report, and the underlying data, and moving parts of a global economy as it pertains to BMWs financials.

But in fact Huh76 knows very little about business, let alone global economics, let alone cars.

What are your credentials, anyway, huh76?

Ouch! Burn!

— indoctrin8ed (View Profile)

Posted on 5/7/2007 6:56:06 PM | reply to this comment | Votes: 1