BMW increases goals as auto market recovers

BMW raises their 2010 outlook as the recovery of the automobile market continues to become evident. Their high sales in China, high sales in United States and Europe, and the huge demand for the 5 Series sedan are only few evidences that the market is becoming interested in luxury cars again.

With this, BMW predicts that their sales will increase by about 10%. This is equivalent to approximately 1.4 million units to be sold. BMW also predicts that the operating margin in the automotive unit will increase more than 5%.

Analysts recommend buying BMW stocks as BMW garnered as much as 7.9% to 41.96 euros in Frankfurt trading — the best increase that they have done since September of last year. BMW’s overall value is $33.6 billion or 26.7 billion euros.

BMW is taking advantage of this great market mean and good stock value. In fact, they will be exporting 10,000 3 Series cars from Munich to China, so they can meet the demand there. As previously reported, they have hired more than 5,000 workers and have added shifts to meet the production demands as well.

Their cost cutting goals have also been surpassed. BMW’s partnership with Daimler is expected to give the company a total savings of 4 billion euros by 2012. Now, BMW targets an operating margin of between 8-10% for 2012 and more than 26% return on capital employed.