BMW September Sales Up - Do Not Reflect Economy

FRANKFURT, Oct 10, 2002; Michael Steen writing for Reuters reported that, Luxury German carmaker BMW AG posted strong September unit sales figures on Thursday, propelled by its new Mini model and booming demand from Britain.

The company said its global unit sales in September rose 28 percent to 96,500 units compared with the previous year, including the Mini, which was introduced only last year and therefore had comparatively few sales in 2001.

Core BMW brand sales rose 12 percent to 79,700 vehicles -- outpacing the growth of the rival luxury Mercedes-Benz unit of DaimlerChrysler (XETRA:DCXGn.DE - News), which posted a 10 percent increase to 98,200 vehicles earlier this week.

Although the September sales figures benefited from comparison with a low base last year when sales were depressed in the wake of the September 11 attacks in the United States, BMW and other luxury carmakers have maintained sales growth in shrinking global auto markets.

The company also confirmed its BMW brand sales were up five percent in the first nine months of the year and said it had already sold nearly 105,000 Minis this year, above its original target for the full year.

"The Q3 sales numbers were significantly better than our expectations, there was no model series which disappointed," said WestLB Panmure automotive analyst Henrik Lier, who rates BMW "buy".

"The question is whether the market is at all interested in seeing something like this at the moment," he said. "Right now positive fundamental news like this is not noticed. On the contrary, the smallest things are used to beat stocks down."

By 1138 GMT BMW shares were trading up 2.57 percent at 30.70 euros, partly recovering from a 3.5 percent drop on Wednesday when global automotive stocks suffered heavy losses. The European sector (Zurich:^SXAP - News) also recouped some of its losses and was trading up 1.54 percent.

BMW said its unit sales in Britain, where the Mini is most popular, had shot up 48 percent in the first nine months of the year, to 97,200 vehicles.

BMW chief executive Helmut Panke told Reuters last month the company had raised its full-year target for Mini sales for the second time this year, to about 130,000 of the cars, which are modernised re-makes of 1960s cult British autos.

Panke also reiterated that the company was on track to post better revenues and profits in 2002 than it did last year.