BMW has reported pre-tax profits last year of €3.2bn, just 3 percent down on last year despite a decline in the German car market. It says that it has spent heavily on the development and launch of a series of new models - 5-Series, 6-Series, X3, Z4, X5, MINI Convertible, the upcoming 1-Series - and that it has also been affected by changes in German employment legislation demanding a greater spend on employees retiring early or working part-time. Sales rose by 4.5 percent in 2003 to a record 1.1 million units, including 176,500 MINIs. Chairman Dr Helmut Panke said yesterday, "We will continue this positive development in the current financial year by increasing sales volumes and earnings."