BERLIN (Bloomberg) -- BMW AG, the world's largest maker of luxury vehicles, 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, CEO 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 Automobil Holding 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. “BMW has the right mix of caution and controlled offense to meet its targets.”
Reithofer, 54, intends to add a four-door version of the 6-series luxury coupe after the rollout of the new two-door model next year.
He also plans to introduce new front-wheel-drive technology to the BMW brand, ending the nameplate's exclusive association with rear-wheel powertrains, as the automaker expands its compact vehicle offerings.
“We have plenty of different ideas on how to win new customers” with fresh small-car models, Reithofer said.
The executive, who took over as CEO in September 2006 after overseeing production for six years, has one year left on his current contract. An avid skier and mountain biker, the executive has eliminated jobs and set a target to cut more than 4 billion euros from purchasing outlays to boost auto profits.
He also pushed BMW to develop fuel-saving technology and initiated an electric-car program. The battery-powered so-called Megacity Vehicle, which is due to be introduced in 2013 under a new BMW sub-brand, could eventually become a vehicle family, he said.
Mini brand to expand
The Mini brand will be a focus of expansion with at least three new models in the works. Roadster and coupe versions of the trendy British marque are due within the next two years, while the Countryman, Mini's first four-door vehicle, hits European showrooms later this month.