Auto industry: profit at BMW breaks by more than a quarter

Auto industry: profit at BMW breaks by more than a quarter

Auto industry
Winning at BMW breaks more than a quarter






The Munich team also cannot avoid the downward vigor of the industry – but get more feasible than German competition.

Customs, difficult shops in China and the weak dollar, BMW gave a drop in profits by more than a quarter in the first half of the year. After taxes, the Munich -based company earned 4 billion euros – 29 percent less than in the same period last year, as he announced. This is the third decline in a row in a row. However, BMW is still more stable than the other German automotive groups: VW – like his daughter Audi – had more than a third in the first half of the year, Mercedes -Benz even lost more than half of the profit.



CEO Oliver Zipse considered the BMW half-year figures as evidence of “how robust our business model is”. Already at the beginning of the month, the sales figures had indicated that BMW could get away a little more glimpse than the competition, because the Munich sales were approximately stable – unlike Mercedes and Audi – with a good 1.2 million cars. As was now known, sales fell by 8 percent to 67.7 billion euros.

Customs also significantly burdened BMW – this is not only about exports to the USA, but also about importing electrical minis from China to the EU, which Munich pays 31 percent inches. All in all, the group assumes that the customs surcharges will cost it in the automobile 1.25 percentage points segment in the course of the year. That would be a billion -dollar amount.


Zolldeal could also have a small positive side for BMW




The group did not initially provide information on how expensive the US tariffs were for BMW in the first half of the year. Competitor Audi had recently given the burden of around 600 million euros. In contrast to the Ingolstadt, BMW has its own work in the USA, which roughly produces half of his cars sold there. Another 200,000 cars go to other countries. If the tariffs for exporting cars from the USA to Europe are actually reduced from the current 10 percent to zero, as is currently in the room, BMW would benefit a bit. However, the effect is far away from comparing the loads from 15 percent inches to exports to the United States.


The BMW Group’s business model remains “despite the customs loads”, emphasized CFO Walter Mertl. “Our footprint in the USA helps us to limit the customs effects.” In the half year, you keep “strictly on our annual goals”. This also contributes to higher efficiency and optimized cost structures.


The goals include an input tax result at the previous year’s level – roughly speaking around 11 billion euros. With currently 5.7 billion euros in front of taxes, BMW already has a little more than half of them in its pocket. BMW does not make a forecast for profit after taxes.

Difficult location for the industry





In addition to the US tariffs, the German car manufacturers are currently also suffering from the hard discount fight for the Chinese market. They are particularly difficult there with electric cars. Most have already initiated job mining programs, BMW can avoid this so far.

BMW is now hoping for the new class, the first series vehicle of which will be presented in September at the international automotive exhibition. “With the BMW IX3, we give the starting signal for an unprecedented product high run,” says Zipse. “By 2027 we will launch more than 40 new and revised models – across all segments and drive forms.”

dpa

Source: Stern

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