Financial Earnings Archives

Surge in demand for BMW electrified vehicles

The BMW Group, which is comprised of the BMW, BMW Motorrad, MINI and Rolls Royce brands, has announced its recent sales figures. And based on these numbers, we can say that the Bavarian automaker has had a decent run so far.

Compared to the same period last year, the company has managed to sell 1,401,551 vehicles in the first seven months of 2017. This is a 4.3% increase compared to the previous year and in July’17 alone, sales increased by 0.4%.

Speaking of the achievement, Dr Ian Robertson, Management Board Member for Sales and Brand BMW, said, “Following a record first half-year, our sales in July remain at a very high level, with profitability our primary focus.”

He added, “Despite continuing headwinds in the USA, as well as the model changeover of the BMW X3 and the BMW 5 Series in China, we were still able to achieve last year’s high sales levels, due to our policy of balanced global sales growth.”

July also happens to be a great month for the sales of BMW’s electrified vehicles. And since the beginning of the year the company was able to deliver more than 50,000 BMW i, BMW iPerformance and electrified MINI vehicles. This is a 74.8% increase compared to the same period last year.

Currently, there are total of nine electrified vehicles that are made by BMW. This product portfolio and the fact that it has sold a record number of such vehicle this year has made the automaker the 3rd biggest BEV/PHEV manufacturer in the world.

Supporting this notion is the fact that the i3 has been the company’s best selling compact battery-electric vehicle in the premium segment since 2014. These figures are expected to improve even further as car buyers around the world begin to embrace electrified vehicles as the future of personal mobility.

That said, we shall have to wait and see if these sales figures are affected in anyway by the introduction of Tesla’s affordable family sedan – the Model 3. Touted as the affordable Model S, Tesla hopes to reach a much larger customer base with this relatively inexpensive yet premium EV.

Lotus’ financial health showing signs of improvement

For the first time in a while, Lotus is showing signs of financial stability. This comes after a statement from Lotus Group International Limited (LGIL), saying that it had finished financial year (FY) 2016/17 on plan with a EBITDA profit of £2.0m. This is a marked improvement over the £16.3m EBITDA loss for the same period for the financial year (FY) 2015/2016.

Apart from that, the company has also seen an improvement in Profit Before Tax. This year, it has made a profit of £11.2m, which is a commendable feat considering its dismal £41.2m loss in FY15/16. That said, the bulk of the profit for the FY16/17 came in the second half of the year with a figure of £10m.

Lotus attributes this ‘key’ turnaround to a more streamlined portfolio of sports cars, which includes the Evora, Exige and Elise model range as well as the availability of the new Lotus 3-Eleven. Unlike most automakers, Lotus has stuck to its roots by producing lightweight sports cars with driver enjoyment as the core necessity.

By focusing on its core strengths, the automaker believes that its cars are the finest they have ever been and should pave the way for future investments and developments of new models. And the demand for Lotus vehicles is evident by the company expanding its global markets to include the US. As a result there is now a total of 215 Lotus dealerships in the world compared to 138 that were recorded in 2014.

Speaking of the automaker’s financial feat, Jean-Marc Gales, CEO, Group Lotus plc said, “This is a proud moment for Lotus and to have achieved so much is testament to the hard work of all our staff. Our vastly improved profitability, together with an increase in revenue means that for the first time in many years Lotus is now a self-sufficient and sustainable business.”

Geely’s recent aquistion of Proton, which is Lotus’s parent company, has not changed the governmance of the small scale sports car manufacturer, yet. Though that might soon change as the Chinese giant automaker looks to increase efficiency and synergy between the brands in the near future.

Piston.my