CFO WALTER MERTL
BMW will return to growth in China with new all-electric series, CFO says
BMW aims to regain growth in China with its Neue Klasse series, starting with the iX3 electric SUV launching in 2026. Despite a 15.5% sales slump in China, BMW anticipates the new series, featuring significantly cheaper batteries, will achieve margin parity with combustion engines. However, import tariffs in the U.S. are expected to negatively impact BMW's profit margin by 1.
BMW expects 1 billion euro hit to earnings as tariff war escalates
BMW anticipates trade tariffs will cost the company 1 billion euros in 2024, impacting its earnings margin. Tariffs, including 25% on steel and aluminium, and import tariffs on BMW vehicles to the U.S., are affecting global trade. Net profit fell by over a third due to weak sales in China and Germany. Investors were disappointed by the lower-than-expected margin forecast.
BMW does not expect U.S. tariffs to stay in place all year, says CEO
BMW does not expect the recently imposed U.S. tariffs to stay in effect until year-end. The carmaker's 2025 earnings margin forecast of 5-7% for its automotive sector is predicated on the current tariffs remaining unchanged. CFO Walter Mertl stressed that any changes in the tariff situation would necessitate a revised outlook for the company.
