BMW Slashes Profit Outlook Amid China Slump, EU Hybrid Ban Debate
BMW has revised its annual outlook downward due to sluggish business in China and operational hurdles. The news has put pressure on the company's shares.
The carmaker now anticipates a profit margin of 5 to 6 percent on earnings before interest and taxes (EBIT) for its car division by 2025, a dip from its initial target of 5 to 7 percent. This revision is largely driven by weakening business in China, which has been a significant market for BMW.
The company's pre-tax result is also expected to decrease slightly in 2025, contrary to its earlier pledge to maintain the 2024 level. Additionally, delayed tariff reductions are contributing to the pressure on BMW's results. The stock has been under strain due to these developments.
Meanwhile, politicians Markus Söder (CSU) and Olaf Lies (SPD) have advocated for the EU's planned ban on new combustion engine cars after 2035 to be relaxed, allowing hybrid vehicles even beyond that date. However, BMW's current challenges suggest that the company may need to navigate these changes while also addressing its immediate operational issues.
Read also:
- Planned construction of enclosures within Görlitzer Park faces delays
- Controversy resurfaces following the elimination of diesel filter systems at Neckartor: A renewed conflict over the diesel restriction policy
- Thompson Spencer Bolsters Media Division with Key Appointments in Australia
- Foreign financial aid for German citizens residing abroad persists
