Bloomberg's in-depth analysis of BMW's financial performance

BMW looks like it has everything going for it. Its sales last year set a new record of 1.37 million vehicles. It's pushed DaimlerChrysler AG's Mercedes-Benz aside to become the second- biggest-selling luxury car brand in the U.S., after Toyota Motor Corp.'s Lexus. It has the kind of cult status among owners other car companies can only envy. And it's taken the low-budget, English Mini Cooper and made it a favorite of the post-college set.

The company's investors, however, aren't satisfied. BMW's stock price was up just 6.7 percent this year as of yesterday's close, while Germany's DAX Index gained 13 percent in the same period. Its profit margin has been stuck in the same place for six years. And competitors are eating away at BMW's market share, with Volkswagen AG's Audi and Lexus growing especially fast.

The best evidence that BMW is looking over its shoulder: It now gives U.S. buyers incentives that average $4,000 a vehicle, almost double what Lexus and Mercedes offer.
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indoctrin8ed - 5/7/2007 5:02:54 PM

+2 Boost

This reminds me of a bloomberg analysis of Microsoft stock about 1995. Then it quadrippled.

indoctrin8ed - 5/7/2007 6:37:28 PM

+4 Boost

what's "bmr"? Do you mean BMW? Or was that w key just a little to far away?

indoctrin8ed - 5/7/2007 6:36:11 PM

+2 Boost

I got deboosted, but no rebuttle. Good stuff! The silent idiots are looming...

izfuney - 5/7/2007 8:35:55 PM

+1 Boost

bmr = short for Beemer/Bimmer.
Well its good news for BMW all around then.

S4cabriofoxone - 5/7/2007 11:47:32 PM

+1 Boost

BMW is a tremendously strong brand. They have a very loyal customer base, consistently excellent products and profits that are the envy of every other luxury automaker, sans Porsche. Although their reign won't last forever, I respect them a lot for what they've achieved, just in the last decade. In a different sense, they've come as far as Lexus and Audi.