- Nov 4, 2008
BMW decides not to build Concept CS
Click above to view high-res gallery of the BMC CS concept
The current worldwide economic climate has claimed yet another automotive casualty: the BMW Concept CS. The German automaker cites a distinct lack of profitability as the main reason the CS project has been canceled. Last quarter, the boys and girls from Bavaria returned a profit of just 1.3% from its global automotive operations, and a low-volume halo sedan like the CS would only serve to drive that figure further downward. So, expect the brand-new 7 Series to remain at the top of BMW's model lineup for now.
If not the Concept CS, what current projects are keeping BMW engineers hard at work? Efficiency, fuel consumption and vehicle emissions. As part of the company's new Strategy Number ONE (outlined after the jump), the Munich-based automaker is pushing forward its EfficientDynamics project, which should add technologies such as stop/start and hybrid drivetrains to its mainstream models. After the all-electric MINI E makes its debut at the LA Auto Show, expect BMW to work in earnest on its next city car project that could be a revival of the iconic Isetta brand.
[Sources: Automotive News - sub. req'd, BMW]
Quarterly Report to 30 September 2008
The performance of the BMW Group in the third quarter 2008 was perceptibly influenced by the economic downswing in the wake of the financial crisis. Ongoing consumer reticence in the main sales markets, the weak state of the used car markets as well as increasing refinancing costs had a substantial negative impact on the earnings of the BMW Group.
Model life-cycle factors affect car sales volumes.
In addition to the ongoing adverse business climate, the BMW Group's third-quarter performance was also influenced by model life-cycle factors, particularly in relation to the BMW brand. Between July and September 2008, the BMW Group sold a total of 349,098 BMW, MINI and Rolls-Royce brand cars, 4.2 ) to 1,113,972 units.
Market conditions for the motorcycle business were also difficult. The third-quarter sales volume achieved by the Motorcycles segment was nevertheless ahead of the previous year's high level. In total, 24,818 motorcycles were sold during the period (+ 5.4 short of the number sold in the corresponding period of 2007.
In the Financial Services segment a total of 2,971,437 (+ 17.0 to euro 12,588 million, reflecting the noticeable reluctance of customers to spend in the face of the crisis on international financial markets. Despite this extremely unfavourable situation, the BMW Group, with revenues of euro 40,425 million, was nevertheless able to maintain nine-month revenues at the previous year's high level. Adjusted for exchange rate factors, Group revenues for the nine-month period were up by 5.1 to euro 387 million. The profit before financial result for the nine-month period, at euro 1,639 million, also dropped steeply (- 43.6 lower than one year earlier, while that for the nine-month period fell to euro 1,522 million (- 43.3 ). The net profit for the nine-month period was 39.7 in 2010. The corresponding EBIT margin in the Automobiles segment would then be just under 6 and a return on sales of between 8 .