BMW profits motor ahead

The new Mini has proved extremely popular

Strong car sales have driven BMW's profits higher, and the German auto maker says it is on track to hit its sales targets for the year.

BMW said its pre-tax profits for the April to June quarter rose by 2.5% to 1.02bn euros ($990m; £646m).

Its car division was the star performer, raising profit by nearly 9% to 958m euros, with sales of the new Mini and the BMW 7 series thought to be doing well.

The company reiterated its expectation that it would sell more than 1 million BMW and Mini cars this year.

Could do better?

Analysts say BMW's focus on up-market models has helped it avoid the problems encountered by other car makers during the economic downturn.

The Z3's replacement is due in October

But while BMW's profit figures were in line with expectations, some analysts were disappointed given more impressive results from rival European carmakers.

Last week, Volkswagen, Europe's biggest car maker, reported a 13.5% rise in pre-tax profits for the second quarter.

New models

BMW is now pushing ahead with an ambitious expansion programme which will see it introduce a number of new cars over the next couple of years.

Among the new models are the Z4 sports car, which is due to replace the Z3 in October this year.

And in January next year, BMW will gain the right to produce Rolls-Royce cars after winning a legal battle for control of the brand from Volkswagen.