BMW AG cautioned that "fierce" competition and higher spending levels will hold back profit gains this year, as aging models caused profitability to slide in the third quarter.<br />Slowing sales growth in China and pressure from rivals such as Mercedes-Benz are putting the world's biggest maker of luxury cars on the backfoot.<br />The company stuck to a goal of achieving a fifth consecutive year of record profit, but said growth will slow as costs to remain competitive climb.<br />"We are working hard to reach these targets, though we are faced with challenges in a number of markets," including slower growth rates in China, Chief Financial Officer Friedrich Eichiner said Tuesday on a call with reporters.<br />BMW is locked in a battle maintain the lead in global luxury-car sales over Daimler AG's Mercedes and Volkswagen AG's Audi.
