BMW Readies Largest New-Model Rollout Ever

BMW AG says it will introduce 40 new or revamped models over the next two years in a bid to revive profits and regain its sales lead over rival Daimler AG’s Mercedes-Benz brand.

The blitz comes as the company vows to hike spending on technology and product development over the next two years above last year’s €5.2 billion ($5.6 billion). CEO Harald Krueger also aims for a slight improvement in revenue and profit this year.

Last year BMW reported record revenue of €94.1 billion and record pretax profits of €9.6 billion. But the group’s profitability sank to a six-year low. Unit sales by the company’s namesake brand grew 5% to 2.00 million vehicles, setting its sixth consecutive record high. But volume lagged Mercedes’ 11% growth to 2.08 million units.

The company insists profits are more important than sales volume, even as it pledges to “significantly” hike sales volume and revenue by 2020. BMW aims to hike sales of hybrid and all-electric vehicles to a record 100,000 units this year. The company, which currently offers seven electrified models, reiterates that it expects that such powertrains will account for 15%-25% of its sales by 2025.