BMW's net profits tumbled nearly 90 per cent in 2008, but bosses have insisted the company is in robust health.
Official figures revealed today show that BMW made 330 million Euros (around £303 million) in 2008.
The 89.5 per cent drop in profits has been put down to 2.4 billion Euros (£2.24bn) of exceptional costs linked to bad debts, personnel costs and provisions to cover risks on used car markets.
BMW's bad news rounds off a pretty stinging day for the car industry, after Saab announced earlier today that it is cutting 750 jobs, and Volkswagen predicted a sizeable drop in profits in 2009.
Norbert Reithofer, BMW's chief executive, said in a statement, "The BMW Group has been able to make improvements at an operating level in the midst of extremely difficult economic times.
"Cost structures have been further optimised and thanks to rigorous management of free cash flow, the BMW group is in a very solid financial position."