While the problems of American brands General Motors and Chrysler continue to occupy media attention, both BMW and Suzuki have announced strong profits for 2008 and indicate continued growth as the world shows signs of economic recovery.

BMW says the global market for premium vehicles will continue to grow in the medium to long term and points to emerging markets like China where currently premium vehicles account for only one to two percent of sales - well below other countries.

With its new flagship BMW 7 Series and Z4 Roadster already on sale, the German marque will also launch the 5 Series Gran Turismo and X1 during this year.

Sales Performance

In 2008, BMW sold 1,435,876 BMW, MINI and Rolls-Royce vehicles and delivered a before-tax profit of euro 330 million.

Suzuki reported a 2008 profit of 27.4 billion Yen ($US280 million) despite a drop in production to 2,493,657 units. Suzuki has recorded a profit every year since 1950.

Strong sales in India and throughout Asia aided Suzuki which had limited exposure to the tough conditions in North America. At home in Japan, Suzuki is the number three best-selling brand - ahead of rivals such as Honda, Mazda and Mitsubishi - mostly thanks to its dominant position in the mini-vehicle market where it enjoys a market share of 32 per cent.

Suzuki predicts the current year will also be profitable and - like BMW - is buoyed by the potential for further sales growth in emerging markets like India.

Sustainability

BMW predicts customer demand in the premium sector - until now driven by high performance and luxury features - will soon focus much more on sustainability.

In 2008 the Dow Jones Sustainability Indexes listed the BMW Group as the leading company in the automotive sector for the fourth consecutive year. There are already 49 BMW and MINI models which meet the strict EU5 emissions standards and according to Mr Norbert Reithofer, BMW’s Chairman, that points to the company’s future direction.

"In the future, premium will not just be defined in terms of horsepower, but much more in terms of sustainability," Mr Reithofer said. "We will be launching the first megacity vehicle with a fully electric drive or an ultra-efficient combustion engine by the first half of the next decade. This vehicle will launch a whole family of extremely low-emission vehicles."

The first step in that direction is here already with BMW testing the electric-powered MINI E right now in Germany, North America and the UK.

BRAD LEACH