German luxury car maker BMW will increase research and development spending this year to record 7 billion euros. The investment will bring 25 electric BMW models to market by 2025. Despite higher spending, the carmaker, whose brands include Rolls-Royce and Mini, is expecting this year’s economic results to be at least the same as last year when earnings before tax rose 10 percent to a record 10.7 billion euros.
Last year, BMW released €6.1 billion for research and development. BMW plans increased investment in new models, electric and autonomous cars in next years.
The company confirmed on Wednesday that its net profit rose 26 percent last year to EUR 8.7 billion. The financial position of the company remains strong, which allows it to pay a record dividend of four euros per share, said Chief Financial Officer Nicolas Peter.
Last year, the company sold 4.1 percent more cars, a total of 2.46 million, including the Mini and Rolls-Royce brands. The sale of electric and hybrid cars increased by 65.6 percent to 103,080. The company hopes that this year the volume of sold electric vehicles will increase to 140 thousand, next year they want to sell more than half a million.