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ECONOMY

BMW and Audi race to record sales in 2012

German top-of-the-range carmakers BMW and Audi said Thursday they raced ahead to new sales records in 2012, with growth driven primarily by demand outside Europe.

BMW and Audi race to record sales in 2012
Photo: DPA

BMW said in a statement that it sold a total 1.845 million vehicles last year, an increase of 10.6 percent over 2011, while rival Audi, a unit of Volkswagen, was able to lift its sales by 11.7 percent to 1.455 million units.

In December alone, BMW sold 181,571 vehicles, which represents a rise of 14.8 percent year-on-year, while Audi did not fare quite as well, lifting sales by a much more modest 0.8 percent to 110,400 units.

“2012 was a very successful year for us,” boasted BMW’s sales and marketing chief Ian Robertson.

“The BMW group achieved its best ever sales result for the second year in a row and expanded its lead in the premium segment,” Robertson said.

And he continued: “We enter the new year with positive momentum and despite the prevailing headwinds in some markets, we aim to achieve another record year in sales in 2013.”

Audi’s sales and marketing chief Luca de Meo said: “Audi ran up new records in all regions in 2012.”

In Europe, too, “we grew against the negative market trend and extended our lead as the strongest premium brand,” de Meo said.

He attributed the carmaker’s success to new models, including the new four wheel drive Audi Q3.

Both BMW and Audi said strong demand from outside Europe was the main driver of their success.

In BMW’s case, while European sales edged up by 0.8 percent in 2012, sales in Asia raced ahead by 31.6 percent, with Chinese sales soaring by 40.4 percent. In the Americas, sales were up 11.9 percent last year, BMW said.

Audi’s US sales sped ahead by 18.5 percent and its Asian sales roared 28.1 percent higher, with Chinese sales up by 29.6 percent and sales in India by as much as 63.4 percent.

In Europe, its biggest market, Audi reported a 1.8 percent increase in unit sales.

AFP/mry

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ECONOMY

How is Denmark’s economy handling inflation and rate rises?

Denmark's economy is now expected to avoid a recession in the coming years, with fewer people losing their jobs than expected, despite high levels of inflation and rising interest rates, The Danish Economic Council has said in a new report.

How is Denmark's economy handling inflation and rate rises?

The council, led by four university economics professors commonly referred to as “the wise men” or vismænd in Denmark, gave a much rosier picture of Denmark’s economy in its spring report, published on Tuesday, than it did in its autumn report last year. 

“We, like many others, are surprised by how employment continues to rise despite inflation and higher interest rates,” the chair or ‘chief wise man’,  Carl-Johan Dalgaard, said in a press release.

“A significant drop in energy prices and a very positive development in exports mean that things have gone better than feared, and as it looks now, the slowdown will therefore be more subdued than we estimated in the autumn.”

In the English summary of its report, the council noted that in the autumn, market expectations were that energy prices would remain at a high level, with “a real concern for energy supply shortages in the winter of 2022/23”.

That the slowdown has been more subdued, it continued was largely due to a significant drop in energy prices compared to the levels seen in late summer 2022, and compared to the market expectations for 2023.  

The council now expects Denmark’s GDP growth to slow to 1 percent in 2023 rather than for the economy to shrink by 0.2 percent, as it predicted in the autumn. 

In 2024, it expects the growth rate to remain the same as in 2003, with another year of 1 percent GDP growth. In its autumn report it expected weaker growth of 0.6 percent in 2024.

What is the outlook for employment? 

In the autumn, the expert group estimated that employment in Denmark would decrease by 100,000 people towards the end of the 2023, with employment in 2024  about 1 percent below the estimated structural level. 

Now, instead, it expects employment will fall by just 50,000 people by 2025.

What does the expert group’s outlook mean for interest rates and government spending? 

Denmark’s finance minister Nikolai Wammen came in for some gentle criticism, with the experts judging that “the 2023 Finance Act, which was adopted in May, should have been tighter”.  The current government’s fiscal policy, it concludes “has not contributed to countering domestic inflationary pressures”. 

The experts expect inflation to stay above 2 percent in 2023 and 2024 and not to fall below 2 percent until 2025. 

If the government decides to follow the council’s advice, the budget in 2024 will have to be at least as tight, if not tighter than that of 2023. 

“Fiscal policy in 2024 should not contribute to increasing demand pressure, rather the opposite,” they write. 

The council also questioned the evidence justifying abolishing the Great Prayer Day holiday, which Denmark’s government has claimed will permanently increase the labour supply by 8,500 full time workers. 

“The council assumes that the abolition of Great Prayer Day will have a short-term positive effect on the labour supply, while there is no evidence of a long-term effect.” 

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