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Wuhan, China – May 25: (China outside) Attendees use protective masks while looking around the AT BMW IX3 during 2023 Chinese Central International Auto Show on May 25, 2023 in Wuhan, province of Hubei, China. More than 80 brands participated in the International Auto of Central China 2023 that began on Thursday. According to local reports, more than 40 brands of electric vehicle brands participated in the exhibition. (Photo of Getty Images)
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BMWNet earnings collapsed by more than a third in 2024, marking “continuous dim demand in the Chinese market.”
Net earnings for the year fell by 36.9% per year to 7.68 billion euros ($ 8.32 billion). The impression was in line with an LSE forecast, according to Reuters.
The shares were quoted by 2% lower at 8:57 am, London time, Friday.
The automobile manufacturer said that he expects a profit margin for cars of around 5% to 7% in 2025, compared to 6.3% reached last year, but noted that the implementation of rates would have a negative impact on profits in the following year.
“A challenging competitive environment and macroeconomic, commercial and geopolitical developments could have a significant impact on commercial performance,” the company said in a statement.
The company’s forecasts represent all the rates imposed until March 12, including the levies on the imports of US steel and aluminum, and tariffs of 20% in imports from China and 25% in imports from Canada and Mexico.
BMW’s financial director said that additional tariffs on US imports imposed until that date would reduce their margin of car profits at a percentage point, according to Reuters, citing a copy of a speech that will be delivered to investors later on Friday.
The automobile manufacturer said that he expects a “challenging situation in China” in progress, while appointing the tariff walks and “continuous support measures for the supply chain” as winds against this year.
BMW deliveries totaled around 2.45 million units last year, slightly below 2.55 million 2023. The company largely attributed the decrease in delivery stops linked to a defective braking system supplied by Continental, which last year led the car manufacturer to which the car manufacturer lower His perspective of the whole year.
On Friday, the BMW CEO, Oliver Zipse, told “Squawk Box Europe” that tariffs may have been a good instrument decades ago, when global markets were not as interconnected as they are today, but criticized their use in the modern world.
“Everything is connected with everything (today), the world will see very quickly that this may not be the most intelligent way to improve its competitiveness,” he said. “There are (there) strong signs at the same time that there is a future for free trade. We will see in the next 12 to 18 months a change in attitude towards tariffs, I am almost certain.”
