BMW profit falls as Chinese competition bites
Net profit for the third quarter fell about 15% to 1.45 billion euros (US$1.61 billion), and sales fell almost 6% to 30.45 billion euros.
BMW announced a sharp decline in earnings on Wednesday, just a day after releasing its second profit warning of the year. The German automaker cited a 15% drop in net profit, reaching €1.45 billion (US$1.61 billion), and a 6% decrease in sales to €30.45 billion. Last year, BMW's China vehicle deliveries had already reached their lowest point since 2017, but the situation worsened further in the latest quarter, with a 24.8% decline.
This decline in Chinese sales contributed to a 6.3% drop in global deliveries for the company. BMW CEO Milan Nedeljkovic emphasized the need for decisive action, stating that the firm will intensify and expedite structural measures to address the challenges posed by Chinese competition. The automaker, alongside rivals such as Mercedes-Benz and Volkswagen, has been reducing workforce numbers to cut costs, as Chinese competitors have largely displaced German brands in China and are now expanding their exports to Europe.
BMW has pledged to relocate more of its Chinese vehicle production supply chain back to China in an effort to regain market share.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
