BMW, the world's biggest luxury carmaker, said investment in technology and new models such as the i3 electric car would hold back fourth-quarter earnings, after it reported a bigger than expected drop in third-quarter profit.
The German group, which is spending heavily in a bid to stay ahead of rivals Mercedes and Audi, also said quarterly profits were depressed by discounts to lure European buyers. European car sales slumped to their lowest six-months total in 20 years in the first half of 2013. Premium carmakers have fared better than mid-market rivals, thanks to demand from China, and BMW defended investment in launching 25 new models this year and next.
Third-quarter operating earnings at the autos division, which accounts for over 90 per cent of group revenue, fell 6 per cent to €1.55 billion. – (Reuters)