BMW (BMWYY) shares sped to the top of the German market Tuesday after it unveiled the details of a fightback against rivals as part of an effort to reassert dominance over the global market for luxury cars.
BMW said that it plans to release 40 new or revised models before the end of 2018 and predicted 'significant' growth in its luxury segment by 2020. It will also continue to invest in research and development around electric and autonomous cars. The details follow the release of the automaker's 2016 annual report and press conference from Munich.
BMW stock rose more than 2.4% in mid-morning trading in Frankfurt, to change hands at €84.4 at the top of the DAX leaderboard and well ahead of the 0.20% gain for the Stoxx Europe 600 Automobile and Parts index.
The Wolfsburg-based firm was displaced as the world's number one retailer of luxury cars late last year when it emerged that rival Daimler (DDAIF) , which makes the Mercedes-Benz, sold more cars worldwide than BMW did.
Adding further to the pain of a bruised ego, BMW recorded its best year for revenue and profit in 2016 but the stock was routed in March when the numbers that were delivered by the firm failed to meet expectations.
Revenue was €94.1 billion ($97.8 billion), up 2.2%, but around 1% below consensus. Earnings before interest and taxes, or operating profit, missed by 5% when it was reported at €9.3 billion.
Key drivers behind the miss were costs around the development of the new BMW 5 series and a more conservative approach to the resale value of leased cars.
BMW, as well as the other German firms, is also attempting to navigate the waters of U.S. politics given the opening salvos fired toward them by President Donald Trump even before his inauguration and entry into the White House.
BMW is in the midst of building a plant in San Luis Potosi, Mexico that would build the BMW 3 Series starting from 2019. The company has said that it is committed to the Mexican production site in which it invested €1 billion ($1.05 billion) in 2016.