While BMW, the Germany luxury car group,
has declared that the global financial crisis damaged its first
quarter results for 2008, it maintains that it should gain record
sales for the year ahead. The group’s leasing activities, its main
market, suffered from credit defaults, late payments and problems
in selling second-hand cars turned in by customers.

The group’s net profits fell 17 per cent year-on-year to €487m,
while pre-tax earnings declined 25 per cent to €641m. However BMW
sales increased 11 per cent to €13.3bn.

The financial services division reported first quarter earnings
down 58 per cent to €79m, and pre-tax profit also fell 54 per cent
to €84m.
In a statement, BMW said that used car prices had fallen, which
meant that the level of revenues generated at the end of lease
contracts had consequently declined. Nevertheless, its major
brands, BMW, Mini and Rolls-Royce should set a record in new car
sales for this year.