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BMW Auto Margins Slip on Spending to Keep Ahead of Audi

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Bayerische Motoren Werke AG, the world’s biggest maker of luxury cars, reported a drop in profitability at its auto unit as it invests on expanding offerings to keep ahead of Audi in a tightening race for the sales lead.

Operating profit at BMW’s car division fell to 10.9 percent of sales last year, down from 11.8 percent in 2011, the Munich-based carmaker said today in a statement. BMW slightly trailed the 11 percent margin of Volkswagen AG’s Audi in 2012.