Mini helps BMW to magic million
SALES of the mighty Mini are powering BMW to a production record of one million cars a year. A second-quarter profits statement revealed that for the first time a combination of Mini style and high-end luxury cars is propelling the Bavarian firm to new heights.
Pre-tax profits for the quarter grew 12% to e629m (£414m). The gross turnover was e11.6bn. The profits increase came despite a July recall on 56,000 X5 sport-utility vehicles and 38,700 Minis worldwide to fix transmission and brake problems.
The recalls would cost e3.9m for the Mini and e2.4m for the X5, the company said. Last year the firm produced and sold 905,000 vehicles, and this year the million mark will be reached.
Some analysts thought the results would be higher, but BMW said it was satisfied. Since severing its links with Rover, dubbed the English Patient, two years ago, the company has gone from strength to strength. It is still family-owned, with most of the power in the hands of the secretive Quandts.
