BMW profits held back by investment in new models

BMW, the world's biggest luxury carmaker, said investment in technology and new models such as the i3 electric car would hold back fourth-quarter earnings, after it reported a bigger than expected drop in third-quarter profit.

The German group, which is spending heavily in a bid to stay ahead of rivals Mercedes and Audi, also said quarterly profits were depressed by discounts to lure European buyers. European car sales slumped to their lowest six-months total in 20 years in the first half of 2013. Premium carmakers have fared better than mid-market rivals, thanks to demand from China, and BMW defended investment in launching 25 new models this year and next.

Third-quarter operating earnings at the autos division, which accounts for over 90 per cent of group revenue, fell 6 per cent to €1.55 billion. – (Reuters)