MINI and Rolls-Royce help steady BMW Group sales

In total, the BMW Group sold 1.4 million cars around the world last year with UK-built MINI volumes growing to 232,425, up more than 4 per cent on 2007 while Rolls-Royce sold 1,212 cars, up from 1,010 a year earlier.

BMW chairman Norbert Reithofer told the company's annual accounts press conference in Munich today that despite "current challenging" economic times, the company is sticking with its long term strategy although he expects volumes to decrease between 10 per cent and 12 per cent this year.

He added: "I also expect the economy to pick up in 2010. At that point we will also gain additional momentum from our new product range. The ramp up of our highest volume models between 2010 and 2012 will reinforce this trend."

Although the company reported profits down 90 per cent last week, Reithofer said that company was still in a strong position financially.

"We prepared ourselves early on for severe business conditions, for example by taking immediate steps to bring production volumes into line with lower demand, thus enabling us to further optimise working capital. This is also reflected in reduced inventory levels."

BMW also reduced its number of employees through the sale of business units, normal staff attrition and the expiry of temporary contracts.

In the UK, 850 jobs at the MINI plant in Oxford went at the beginning of March as the plant dropped one of its three production shifts and began operating five days a week instead of seven days. The plant eliminated 300 temporary jobs at the end of December. The facility's 4,500 regular employees returned to work in January after an extended four-week Christmas holiday.

At the end of last year the worldwide workforce comprised 100,041 employees, down from 107,539 at the end of 2007.

Credits: JRC