BMW is to build a new type of Mini and a smaller, cheaper Rolls-Royce under ambitious plans set out last week to restore investor confidence and attract younger customers.
Among the new models likely to get a green light for production in the coming months are the four-door CS concept, aimed at chasing sales of the Mercedes CLS, and a new range of people carriers, reportedly going under the V moniker (V3/V5/V7).
The German premium carmaker outlined its strategy to sell substantially more than two million vehicles a year by 2020 and increase its return on sales in the core cars division to as much as 10 per cent by 2012.
Norbert Reithofer, chief executive, said the group would create new concepts in personal mobility, including hybrids and hydrogen-fuelled cars.
"Our vision for the future is zero-emissions driving," Reithofer said. The Japanese group Toyota, which made an 11 per cent return on sales in 2006, is the model for BMW in earnings and eco-friendliness.
Mr Reithofer killed off suggestions that BMW could expand by acquiring Volvo from Ford. But he said it was open to acquisitions and taking on a fourth brand - provided it met earnings and quality criteria. He also pointed to the possibility of greater co-operation with companies such as Mercedes.
He admitted that BMW's profits, which reached €4 billion before tax last year, were increasing "at a disproportionately low level" and sales risked running out of steam in the years ahead.
"We cannot carry on as we did before . . . Yesterday's formula for success will not work in the future."
The shake-up at the world's leading premium carmaker has been developed in a series of executive conclaves at a Bavarian lakeside retreat. It will see two new board members, with Stefan Krause, the youthful finance director, moving to sales and marketing.
BMW plans to raise car sales from the current 1.4 million a year to 1.8 million by 2012 and "significantly" more than two million by 2020. Rolls-Royce will produce a coupé version of its Phantom model and take on Bentley, owned by Volkswagen, and others with a cheaper, smaller model.
(additional reporting, Michael McAleer)