BMW to expand model range to fend off VW and Daimler

Bayerische Motoren Werke AG, the world’s largest maker of luxury autos, will expand the BMW and Mini model ranges to boost annual sales 55 percent over the next decade and fend off Volkswagen AG and Daimler AG.

A new factory and expansion of existing facilities may be needed to underpin growth in the long run, Chief Executive Officer Norbert Reithofer said. BMW aims to sell more than 2 million vehicles by 2020 from 1.29 million last year.

“The big push in new models, entering new segments comes after 2012,” Reithofer said at the automaker’s Munich headquarters. “If I look forward to 2020, then we have to think about additional capacity.”

BMW plans to widen the 6-Series and Mini model lines as well as build a battery-powered car for city driving, the CEO said. The maker of BMW, Mini, and Rolls-Royce vehicles is fighting to protect its turf from Volkswagen, the owner of Lamborghini, Bentley and Audi, as it merges with Porsche SE. Audi has vowed to topple BMW as the luxury leader by 2015. BMW claimed the top spot from Daimler’s Mercedes-Benz in 2005.

“If you’re not on the attack, there’s the risk of ending up on the defensive,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler, who recommends buying the shares. “BMW has the right mix of caution and controlled offense to meet its targets.”

BMW shares have climbed 38 percent this year, outperforming Volkswagen’s 27 percent gain and Daimler’s 11 percent increase. The shares closed yesterday at 44.04 euros, valuing the company at 28.1 billion euros.

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