And then, of course, there's also China.
BMW, like all other automakers, learned several years ago that SUVs generate massive profits. It's just a winning formula. Thanks to models like the X3, X5 and X6, BMW has been doing exceptionally well; in fact, today it stands as the world's biggest manufacturer of luxury cars. A new financial report coming from Bloomberg states that BMW is having its highest profitability in three years thanks to its SUVs as well as the increasing demand from China.
BMW has pretty much defied market analysts sales expectations by having a high cash flow and selling its entire product line. Dealerships worldwide are simply moving units left and right. This is partially due to launching 16 new or refreshed models this year alone. There's also quite a range within those models, from the new X5, an updated 5 Series, to the i3 and i8. In fact, the X5 alone has experienced a 30 percent sales increase in the first half of this year. However, BMW is also predicting that its total profits will decrease somewhat later this year as development spending rises. Still, BMW is staying ahead of its two German rivals: Audi and Mercedes-Benz.