BMW Chairman Upbeat on U.S Sales Outlook
German luxury car maker BMW expects increased sales in the United States this year despite industry predictions for a decline in the market, the company's chairman said on April 9. Joachim Milberg, in Dublin to address the Institution of Engineers in Ireland, said U.S. sales in the first three months of the year had beaten market expectations for a slower growth rate than last year, with sales up 4.7 percent in March alone. He also said BMW planned to double its production of its X5 sports utility vehicle to around 80,000 units and most of these would go to the U.S. "We are positive for the U.S. market," he told reporters. Some industry experts expect the American market to ease by as much as 10 percent this year. On April 9, BMW reported that global sales rose 9.7 percent in the first quarter, with sales in the key German market up 5.8 percent. Milberg said the company's compact X1 series - to be launched in 2004 - would be produced at BMW's Regensburg facility in southern Germany where the X3 series is currently made. However this would result in the need for additional capacity to produce the X3. The company was considering a dozen locations in Europe and would make a decision within two to three months, Milberg said. Having put its costly experience with Britain's Rover behind it, Milberg said BMW had no plans for further brand acquisitions. BMW's exit from Rover last year cost it around $3.6 billion. The BMW chairman said the company was aiming to cut its production time to 10 days from 12 over the next few years. "We should be able to build a luxury car in a short time. It will take a lot of flexibility but it will be an advantage in this very competitive market," Milberg said.
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