“Starting with the launch of the new R1200 GS in 2004, we have adopted a new course,” Diess said while at EICMA in Milan. “We are becoming more dynamic, more powerful, lighter and sportier. Our models are clearly differentiated and are more clearly positioned within the segments.”

Diess pointed to the recently introduced HP2, R 1200S and F 800 models as examples of BMW's “new path.”

BMW has a 6.4% share of the world motorcycle market - 7.6% counting only units above 500cc. BMW motorcycle sales for the 10 months through October were up 10% from sales during the same period in 2004, and Diess said he expected year-end sales and profits to reach record levels.

The Munich-based manufacturers total worldwide motorcycle sales were 92,266 units, a .7% drop from the 92,962 units retailed in 2003. The company says revenues from motorcycle sales in 2004 were euro 1.029 billion, down 2.5% from revenues of euro 1.055 billion in 2003.