German car giant BMW has revised its profit forecast for this year and said that pre-tax profit will drop significantly this year. 20 Minutes reports this.
BMW recorded a significant drop in profits in the third quarter – from July to September the company earned 476 million euros – this is almost 84% less than in the same period last year. Sales fell by almost 16% to 32.4 billion euros. Overall, the automaker said it was under significant pressure in the third quarter. The main reason is said to be the reluctance to buy products from a German manufacturer in China. In addition, in September, BMW recalled or stopped the delivery of 1.5 million vehicles worldwide due to problems with the braking system.
BMW’s operating profit in the third quarter was weak, with a margin of 2.3% and even worse than Mercedes’.
It is noted that Volkswagen (VW) and Mercedes recently recorded a significant drop in profits.
“The 30 percent decrease in the sales of BMW cars in China, as well as other German car makers, shows that BMW, Mercedes and VW have a big problem,” – said car expert Ferdinand Dudenhöffer.
While Tesla and Chinese car makers such as BYD, Chery, Geely, Li-Auto, Nio, Xiaomi or XPeng are increasingly vocal in their use of new technologies, the German car industry is declining at a higher rate , he noted.
“The value of the almost sacred brand of German car makers is melting in China like the snow of the sun. China has the digital infrastructure for a new car, Germany is trying to close blind spots and is increasingly worried about Germany’s huge cost disadvantages and slowness as a location to do business. The quarters ahead do not seem to differ from the current poor results,” said Dudenhoeffer.
2024-11-19 16:58:00
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BMW’s announcement of a significant drop in profits for this year has sparked concern in the automotive industry. As a website editor for world-today-news.com, I would like to explore this topic further by conducting an interview with two guests who have expertise in the automotive sector: Sigrid, a market analyst, and Ferdinand, a car expert.
Thematic Section 1: Understanding the Causes of the Decline in German Car Brands’ Profits
First, we will discuss the causes of the decline in profits for German car brands such as BMW, Mercedes, and Volkswagen. Sigrid, can you provide insights into the factors contributing to this trend? How have these companies been affected by the reluctance of Chinese consumers to buy German products? Furthermore, how has the recall of 1.5 million BMW vehicles affected the brand’s reputation and sales?
Thematic Section 2: The Impact of Technological Advancements in the Automotive Industry
The article also mentions the increasing popularity of electric vehicles and new technologies in the Chinese market. Ferdinand, could you comment on how German car manufacturers are lagging behind in this area compared to their Chinese counterparts? Additionally, what challenges do you think German car companies face in terms of embracing digital infrastructure and upgrading their manufacturing processes?
Thematic Section 3: The Future of the German Car Industry
we will discuss the outlook for the German car industry in the coming years. Sigrid, what steps do you think these companies need to take to recover from this slump? Do you see any potential for growth in the near future? On the other hand, Ferdinand, you have stated that “the quarters ahead do not seem to differ from the current poor results.” Can you elaborate on this pessimistic viewpoint? How do you envision the German car industry evolving in the next decade?
Engaging and open-ended questions will be used throughout the interview to encourage discussion and different viewpoints. The guests’ insights and opinions will provide valuable insights into the current state of the automotive industry and its future direction.
