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BMW 5 Series Sales Boosts Company's Revenues While Earning Top Safety Pick

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On: Wed, Aug 4, 2010 at 10:47AM | By: Sherry Christiansen

BMW  5 Series Sales Boosts Company's Revenues While Earning Top Safety Pick

The redesigned BMW 5 series is the first from the German automaker to receive the award for Top Safety Pick from the IIHS since rollover tests were added.

Top Safety Pick award includes recognition of vehicles that scored highest of Good on the front, side, rollover, and rear crash protection. In order to be a contender for first place in this award, a vehicle must have electronic stability control which comes standard (along with side air bags) in the 2011 BMW 5 Series.  

In the new rollover testing, that IIHS implemented recently, BMW scored a Good rating with a 4.40 score, which indicates that the new 5 Series will be able to withstand up to 4 times its weight on its roof. Not only is BMW moving up the ranks in reliability ratings for its vehicles, it seems that the company also reported the biggest profit in over 2 years as a result of increased demand for the 5 Series in the U.S. and China. 25,000 new 5 Series models have been sold by BMW just since the new 2011 Sedan has been available.

BMW’s gross revenues have increased 18%, according to a BMW spokesperson; profit has risen to 15.3 billion Euros in the second quarter which is much higher than financial analysts had projected.

“Fantastic results,” said Aleksej Wunrau, an analyst with BHF-Bank in Frankfurt. “It is the surprise of second-quarter reporting compared to predictions in the auto sector so far.”

Mercedes Benz posted financials that qualified the company to rank 2nd with a 12% gain. Volkswagen AG’s Audi has reported a 19% increase in revenues.

“Sharp sales volume growth on major markets and a high-value model mix are the main reasons for the strong second-quarter performance,” CEO Norbert Reithofer said in today's statement. “We have made good progress towards achieving our profitability targets.”

BMW will not only be increasing production of the 5 Series this year, the company will also expand production of the new X3 and the Mini Countryman.

“The 5 series is very much in demand, adding to an otherwise very strong product line-up,” said Georg Stuerzer, a Munich-based analyst. “The company is known to be fairly conservative when it comes to its outlook. But when you look at other manufacturers, like Daimler, I think BMW can do at least as well as that in the second half.”

According to the company, BMW has hired 5,000 temporary workers to help meet the increased demand for 2011 models.

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