BMW expects the internal combustion engine to remain in China for at least a decade, despite the rapid shift to electric vehicles in the world’s largest car market. The company’s CFO, Walter Mertl, stated that combustion engines will continue in specific price segments. However, BMW is accelerating its EV rollout using the Neue Klasse platform and will export China-made vehicles across Asia.
Operating profit fell 30% to €1.6bn in the third quarter, with revenue down 6% to €30bn. Sales in China dropped by a quarter year-on-year. BMW has cut its full-year margin forecast to between minus 0.5% and 0.5%, down from 1–3%.
The company is intensifying restructuring, including cutting over 100 managers and 8,000 back-office jobs. Unlike Volkswagen, BMW is not reducing its German assembly workforce. It has invested €2b in German plants and a new battery facility.
BMW shares are down nearly 40% this year.
Source: Financial Times Companies · Summarized by HeadlinesBriefing