German car manufacturer BMW, the worldÔÇÖs largest maker of luxury cars, has suffered a 74 per cent decline in third quarter profits after the recession hit demand for higher priced vehicles.
 
 
Net profit fell to Ôé¼78 million (┬ú70.5 million) from Ôé¼296 million a year ago, with total sales of BMW, Mini and Rolls-Royce cars falling 7.2 per cent to 324,100 in the third quarter. Over the first nine months of 2009, sales were down 15.7 per cent on a year ago.
 
BMW said, however, that it hoped to make a full-year profit after recent signs of recovery. "The measures we have put in place to increase efficiency and reduce costs are taking effect," said CEO Norbert Reithofer in a statement. "We are aiming to achieve positive group earnings for the current financial year.ÔÇØ
 
The positive outlook is based on the assumption that the global economy and conditions in the car markets do not worsen before the end of the year. ÔÇ£ItÔÇÖs still too early to give the all-clear for the worldÔÇÖs automobile markets,ÔÇØ said Reithofer, adding that the industry is likely to post a ÔÇ£gradual recoveryÔÇØ in 2010, when new models should boost sales and earnings.
 
While the vehicle scrapping scheme has helped revive demand for cheap small cars, it has not done much for the likes of BMW, which has had to respond to falling sales by building fewer vehicles and reducing work hours for as many as a quarter of its workforce.
 
 
*          *          *
