BMW warned that its core automotive segment could slide to a loss for a closely watched profitability metric, as the group moves to speed up its restructuring program. The German carmaker lowered its full-year guidance for the second time in three months, citing weaker demand in China and higher costs tied to its model overhaul. BMW now expects an EBIT margin of 0% to 3% in the automotive division, down from a previous 4% to 6% range.
The company also cut its group earnings forecast, saying pre-tax profit will decline significantly. CEO Oliver Zipse said the restructuring aims to make BMW leaner and faster, but the transition is pressuring near-term results. Shares fell in Frankfurt trading after the announcement.
Analysts note the profit warning reflects broader challenges for European automakers navigating the shift to electric vehicles and Chinese competition.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing