BMW's fine-tuning solves today's problem, not tomorrow's
It is accelerating its shift towards the high end, but European protection may push its Chinese rivals into luxury
BMW is strengthening its defenses amid an immediate threat from Chinese manufacturers such as Geely Automobile and BYD, which are flooding Europe with cheap electric vehicles and competing strongly in their own markets. The company is betting on its high-end models from the new generation of electric vehicles, Neue Klasse, to boost profits.
However, limits imposed by Brussels will push Chinese rivals to compete more strongly in the luxury segment, making it harder for BMW to achieve its target of an operating margin of 8-10%.
Written by urgent.news from El Pais Economia's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
