Olathe ? Navigational device maker Garmin Ltd. said Friday it will open a third factory in Taiwan as it tries to keep up with consumers wanting to put the devices in their cars and trucks.

Speaking to shareholders at the company’s annual meeting, Kevin Rauckman, the company’s chief financial officer, said the third facility comes quickly on the heels of Garmin opening its second facility in Taiwan last year.

“We thought it was going to be a longer-term expansion plan, but in fact we’re already in need of additional spaces, so we’re just days away from closing our third factory,” Rauckman said, adding that the factory would cost around $90 million.

He said a formal announcement would be coming soon.

Garmin saw sales of its automotive devices surge 170 percent to $1.09 billion in 2006 as drivers increasingly snapped up the gizmos, which use global positioning satellite technology to provide turn-by-turn directions. Some models now include MP3 players and weather forecasts and can direct users around traffic jams or toward restaurants.

Total company sales increased 73 percent to $1.77 billion and profits rose 65 percent to $514.1 million.

Comparing the first quarter of 2006 with the first quarter of this year, automotive sales have grown from 46 percent to 64 percent of the company’s overall business, Rauckman said.

The company told shareholders to expect automotive device sales to continue to be strong, growing by 50 percent in 2007, followed by estimated 20-percent gains for its marine, aviation and outdoor/fitness sectors. Overall, the company said it expects earnings to exceed $2.70 per share on $2.5 billion in revenue.

Analysts surveyed by Thomson Financial expect earnings of $2.85 on sales of $2.57 billion.

Despite the good feelings, company officials acknowledged that demand for automotive devices has brought a plethora of new players to the market, which will erode profit margins for the business over time as Garmin tries to compete on price.

Min Kao, Garmin’s chairman and chief executive, said the company will fight back by pouring more money into research and marketing, both in the U.S. and in Europe, where it is second to market leader TomTom NV.

“We are proud of the many accomplishments in 2006,” Kao said. “However, we do not make the mistake of underestimating our competition or the challenges for the future.”

Garmin shares, which have traded in a 52-week range of $40.305 to $66.39, closed up $1.16 at $63.82 in trading Friday.