BMW shares are trading in the green Monday, as the German carmaker announced positive plans for the business, coupled with upbeat targets. The manufacturer plans to further, significantly increase R&D investment into electric and driverless cars.
The popular car manufacturer also issued a statement Tuesday, confirming its head office had been raided by the German prosecutor’s office as part of a potential emissions software fraud investigation.
By around 1110 BST, BMW shares were 0.92% higher at €86.78. That reverses earlier losses in the stock nearer the market open.
BMW outlook upbeat
After reporting operating profit growth of 5.3% to €9.88 billion in 2017, the carmaker said it is targeting a profit of at least $10 billion in 2018. And, it expects to achieve that even though it is further increasing its R&D spend.
BMW invested €6.1 billion in research and development during 2017. That’s a figure it plans to surpass in 2018, as it works to bring some 25 electric vehicles to the consumer market by 2025.
“Over the course of the year, we will present a number of pure-electric concept vehicles that will all go into series production,” said BMW chairman of the board, Harald Krüger, in a statement. “Our future is definitely electric.”
BMW head office raid
Prior to the firm’s full year financial statement and comments, BMW confirmed its head office in Munich and another facility in Austria, have both been raided by the Munich public prosecutor. The raids are part of an investigation into the carmaker over the possible use of emissions cheating software.
“The BMW Group confirms that the Munich public prosecutor has opened an investigation regarding a software update which has been mistakenly allocated to around 11,400 BMW 750d and BMW M550d vehicles,” the firm said in a statement
“On 20 March, employees of the prosecutor’s office searched two BMW Group locations in connection with the investigation.”
The group adds that it is taking the investigation “very seriously” and is “co-operating fully with the authorities”.