By Jorn Madslien Business reporter, BBC News

BMW promises soaring car sales and plummeting costs

German car maker BMW has said it plans to sell more than 2 million vehicles by 2020, up from 1.4 million today.

The company will be pushing through cost savings worth 6bn euros ($8.4bn; �4.2bn) by 2012 without using job cuts, partly through better currency hedging.

Profit margins from BMW's automotive operations should exceed 8% by 2012, up from 6.3% in 2006, chief executive Norbert Reithofer said.

Motorcycle sales should also soar from 100,000 to 150,000 by 2012.

It became obvious that our competitive position was at stake Norbert Reithofer, BMW chief BMW's long-term future See BMW's share price

"We will continue to expand the range of products in the BMW Motorrad and the Husqvarna range," said Mr Reithofer, referring to the group's two motorcycle marques.

Action required

The announcements came as part of BMW's first strategy review since 2001.

"Yesterday's formula for success will not work in the future," said Mr Reithofer during a press conference.

"From today till 2020, we will keep our headcount stable while taking on more tasks.

"There will be more output for less input. We will focus the entire organisation on the return on capital."

BMW will aim to raise productivity by at least 5% per year, in part by producing more cars and acquire more parts in the US, its main market, where it will gear up the capacity of its Spartanburg plant to 240,000 units per year.

This should reduce the group's exposure to the weak US dollar relative to the euro.

Further acquisitions

Ahead of the announcement there had been rumours that BMW would add a fourth marque.

Such an option had been considered, but has been discounted as there were suitable takeover candidates, Mr Reithofer explained.