BMW released an unexpected preliminary earnings release showing that the Munich-based company made a €330m net profit, down 90% from 2007.

The car maker’s total production fell by 78% during 2008 producing 1.44m cars. The statement cited bad debts, one off costs and risk provision costs on used car markets.

Company chief executive Norbert Reithofer claimed that the economic downturn has given the company an opportunity to strengthen at an operating level.

Cost restructuring and changes to management have helped ease cash flow and the company has reassured investors that sufficient measures have already been taken to strengthen the outlook for 2009.

Source: WhyteGold