BMW has proposed a buy back of up to ten per cent of its shares after recording its most successful ever year.
The car maker reaped the rewards of its product offensive to notch up its highest level of cars sold and profits.
Overall profits before tax increased by 10.9 per cent to £2.47 billion, led by a surge in its automobile division.
Profits in that arm of the business rose by 14.4 per cent to £2.2 billion last year, led by increased sales of BMW, Mini and Rolls Royce.
The company, said it would ask shareholders for permission to buy back and cancel up to ten per cent of the company's share capital.
In a statement, BMW, which operates the engine factory at Hams Hall in Warwickshire, said: "The positive development of cash flows over the past years has enabled the BMW Group to accumulate a substantial level of cash funds and to achieve a solid equity ratio.
"Cash flow will continue to grow dynamically over the coming years."
Chairman Helmut Panke said: "The BMW Group is now reaping the benefits of the upfront expenditure previously incurred to launch new products and to expand the international sales organisation.
"Over the past years we have taken on a new dimension with our range of vehicles, market presence and financial strength and we are now stronger than ever before."
Analysts welcomed the share buy back, saying the company was finally willing to surrender some of its cash in the name of shareholder value.
"The big bombshell is the share buyback programme," said Georg Stuerzer, analyst at HVB Group.
Commerzbank's Adam Collins said: "BMW has been criticised for some time for lacking investor friendliness and this is a sign that it's been listening to the request of shareholders."