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BMW is invested heavily in the battery-powered i3, the new 4-Series coupe and an upgrade of the X5. Expansion is part of BMWs effort to maintain its sales lead over Audi and Mercedes-Benz, which have both promised to pass BMW by the end of the decade.

BMW spent 2.4 billion euros upgrading and expanding facilities in the first half of 13, a 60 percent increase year over year. R&D expenses will exceed the target of 5 percent to 5.5 percent of revenue for all of 2013.
 

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No big surprise here they are not the only ones in the game losing profits. You have to make some sacrifices to have gains and this is one of the steps.
 
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