BMW plans to launch small, high-end car

The world's leading luxury car maker, BMW, yesterday said it planned to launch its own small car that might be based on its Mini model to serve a sector that is developing rapidly.

"We expect by 2020 growth of between four to six per cent in the market for small, high-end automobiles," BMW boss Norbert Reithofer told a press conference in Munich, southern Germany.

"We want to be more present, not just with Mini but also with BMW," he said.

"On the frame of future Mini generations, we could imagine building a BMW," development director Klaus Draeger added, without giving any launch date.

German rival Audi rolled out this year its A1 model to tap into growing demand for high-end autos that consume less fuel.

But Mr Reithofer stressed he wanted BMW to remain "a high-end manufacturer and not a mass manufacturer" that would remain "independent" as the sector looks to consolidation for survival.

The group sold 1.29 million vehicles last year, including 216,000 Minis, and builds motors for small cars in partnership with the French group Peugeot.

On the earnings side, BMW expected a "notable" increase in net profit this year after managing to end 2009 in the black despite a global sector crisis, Mr Reithofer said.

The group forecast sales of more than 1.3 million vehicles, which whould keep it ahead of Audi and Daimler, the maker of Mercedes-Benz.

BMW stood by its 2009 net profit of €210 million, a drop of 36.4 per cent from the previous year, on sales that slipped by 4.7 per cent to €50.68 billion.

"We have significantly reduced costs in all sectors of activity," Mr Reithofer said in the group's home town of Munich.