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’s earnings slipped the day after revealing its second profit warning of the year, as Chinese competition continues to impact the global car industry. The company's net profit for the third quarter dropped about 15% to 1.45 billion euros (US$1.61 billion), while sales fell almost 6% to 30.45 billion euros.
BMW cautioned that costs related to production growth, along with higher-than-anticipated severance payments, could lead to an overall loss for the year in its core car business. On Tuesday, the company issued its second profit warning of 2026, emphasizing the need for decisive action. BMW CEO Milan Nedeljkovic stated that they would intensify and accelerate structural measures to address the situation.
The global automotive landscape is being reshaped as lower-cost and more advanced Chinese rivals have largely replaced German competitors in China, and are now expanding their presence in Europe. Following Mercedes-Benz and Volkswagen, BMW is also implementing job cuts to reduce costs. The company reported that its vehicle deliveries in China, which had already hit their lowest level since 2017 last year, fell an additional 24.8% in the quarter, contributing to a 6.3% decline in global deliveries.
Despite the challenges, BMW, which also includes Mini and Rolls-Royce under its umbrella, has pledged to shift more of its Chinese vehicle supply chain to China itself. This strategic move aims to rebuild its market share in the region.
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.
