Economy got you down? Things aren’t so bad for BMW and VW as they show that there are still plenty of profits in the luxury segment. These two companies are very different but are both known to print money with higher end saloons.
From the New York Times:
FRANKFURT — The market for luxury cars is recovering, but makers of the lower-priced cars that most people drive could struggle with meager profits for years to come. That was the message to be drawn from earnings reports released by Bayerische Motoren Werke and Volkswagen on Thursday.
BMW said that its car division returned to profit in the fourth quarter of 2009, as sales stabilized in established markets and grew in emerging countries like China and Brazil. Soaring demand for higher-priced models like the top-of-line 7 Series contributed to the gains.
For the full year, net profit at BMW beat expectations, falling 36 percent to €210 million, or $286 million. Analysts surveyed by Reuters had on average forecast a profit of €174 million. Sales fell 4.7 percent to €50.7 billion.
Read the full article here.
Photo from fOTOGLIF
