BMW denied on Wednesday a report in Germany’s manager magazin that its cult brand MINI, which was just recently revamped, was struggling to make a profit.

BMW makes money with the MINI,

a spokesman for the premium carmaker is quoted as saying by Reuters.

Manager magazin wrote in an advance copy of its Friday edition that some at BMW are in favour of producing a MINI SUV due in 2010 on a joint platform with the A-Class made by BMW’s arch rival, Mercedes-Benz.

The article claimed the reason for the unofficial talks with Mercedes over joint production was the current difficulty BMW faced pulling MINI back into the black, and that the brand would be close to posting a loss even if MINI’s Oxford plant were to produce at full capacity.

The introduction of the new MINI in 2001 was a resounding success for BMW, which last year expanded its Oxford plant to rev up sales of the second generation model, rolled out in November 2006, to around 240,000 units come next year.

BMW has repeatedly stated in the past that it made money with each MINI sold - a feat made even more impressive by the fact it had to invest in building a totally new car and reviving a discontinued brand.  Analysts have also expected the new, revamped MINI to expand its profit margins further.

Mercedes meanwhile suffered year after year of heavy losses at its Smart brand to prop up sales of now defunct models like the ForFour, and the booming demand for the MINI played a key role in propelling BMW past Mercedes to take the crown as the world’s largest premium carmaker.