GRIM OUTLOOK FOR AUTOMAKERS

BMW drops 2008 sales goal

11-08-2008 | AP

Faced with extremely challenging conditions in the automotive markets, BMW does not expect to beat last year’s record sales

Panama Star FRANKFURT, GERMANY. Automaker BMW AG said Friday that it no longer expects to report record sales for 2008 because of consumers' growing reluctance to spend on new cars amid fears of a recession.

"Faced with extremely challenging conditions in the automotive markets, we no longer expect to exceed last year's record sales for the full year," said Ian Robertson, who oversees the Munich-based automaker's sales and marketing.

Last year BMW sold a record 1.5 million cars.

Robertson provided no estimates for 2008 sales, but the global economic turmoil has made consumers less willing to shell out for its sports and luxury cars and credit costs have made it more difficult for consumers and the company to borrow.

Sagging sales pushed the company's third-quarter profit down to 298 million euros ($383.1 million) compared with 803 million euros a year earlier.

BMW's October sales fell by more than 8 percent, with just 113,005 vehicles sold compared with 123,304 in October 2007.

"In most western European markets, Japan and the United States, sales for October were again lower than those for the same month last year," Robertson said. "Equally, the retail gains made in our growth markets were unable to fully offset those reductions."

BMW — which stands for Bayerische Motoren Werke, or Bavarian Motor Works — said delivers of its namesake brand fell 9.2 percent month last month with 95,502 cars sold compared with 105,178 a year ago.

Its Mini brand sales also fell, dropping 3.4 percent last month to 17,385 cars compared with 17,989.

The Rolls-Royce brand, however, saw sales rise 10.3 percent, with 118 sold in October compared with 107 cars the year before.

Motorcycle sales also rose, climbing to 7,714 sold in October, an increase of 11.7 percent from the 6,907 sold a year ago.

Shares of BMW were down 1.2 percent to 20.81 euros ($26.75) in Frankfurt trading.