BMW Financial Services (BMWFS) has reported
growth of 5.1% in total contracts, 10% in new contracts and 8.7% in
business volume in the first nine months of the year compared to
the first nine months of 2010.
As of 30 September, lease and financing
contracts for dealers and retail numbered 3,303,635, while business
volume in balance sheet terms was €71.98bn (£62.03bn).
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The workforce also increased by 41.8% to 5,621
employees at the end of the quarter compared to the end of Q3
2010.
Global dealer financing stood at €10.66bn
(£9.19bn) at the end of Q3, a rise of 15.4% compared to the same
time last year.
The proportion of BMW Group cars leased or
financed by BMWFS, however, fell by 6.5 percentage points on the
previous year to 41.1% worldwide, including statistics for China
for the first time.
Business in used car finance was also down by
3.9% on the previous year to 231,786 new contracts signed for BMW
and Mini.
Year-to-date, 882,691 new retail contracts
were signed, a 10% increase on January-to-September 2010, including
a 6.1% rise in credit finance, which accounted for 69.1% of
contracts.
BMWFS also raised its earnings before interest
and tax by 67.3% for the nine-month period, 18.2% for the quarter;
and profit before tax was up 66.2%, and 11.3% for the quarter.
Breaking down car sales for the group for the
year-to-date, the BMW 5 Series sold 250,566 units worldwide, up
61%, while sales of the 1 Series and 3 Series fell by 14.9% and
2.5%, respectively. Sales of the X1, however, grew by 30.4%, while
the Z4 saw the sharpest decline of any BMW, falling by 24.3%. Total
BMW sales increased 14.5%, and by 8.2% for the quarter.
Mini sales were up 24.1% over the nine months,
and 13.4% in quarter three, as customers switched to the countryman
and coupé ranges, away from the regular, convertibles and clubman
ranges, which fell by 12%, 7.9% and 16.9% respectively.
Rolls-Royce sales also rose by 41.3% from
January to September compared to the same period in the previous
year, and by 12% in Q3.
Worldwide, across all three marques, group car
sales were up 16% for the first nine months and 9% for the quarter
compared to 2010, though demand in the UK fell by 6%,
year-to-date.
BMW Group forecasts that profitability in
BMWFS will be sustained at a high level for Q4, with a predicted
equity return of 18% for the full year. The Group also predicts a
slight increase in bad debt risks and no rise in residual value
risks. It expects the UK automobile market, along with those of
France, Italy and Spain, to have shrunk by the end of the year, but
that the financial services market across the continent outside
southern Europe will remain stable.
richard.brown@vrlfinancialnews.com
