BMW has to spend to make money
The car maker says short-term profit will be sapped while it launches a huge product offensive and positions itself for a future of robocars
Munich — BMW is pleading for patience as it invests in beating back Mercedes-Benz, promising a deluge of new models and a future of electric robocars. While the costs of revamping BMW’s aged line-up and developing future technologies are weighing on profit now, the car maker is prioritising the long-term race to win over a new generation of customers, according to its first-quarter financial report on Thursday. "Short-term gain is not the decisive factor for us: we remain focused on sustainable, profitable growth," chief financial officer Nicolas Peter said in a statement, noting that spending on new versions would continue to climb in 2017. Weighed down by rising expenses, BMW has maintained a cautious approach even after Daimler’s Mercedes-Benz surged past it in sales in 2016 for the first time in more than a decade. BMW CEO Harald Krueger has overseen a meek revamp of the 5-Series sedan since taking over in 2015 and has held off on launching new stand-alone electric models. BMW’s...
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