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BMW Predicts €1 Billion Hit from Trade War, Higher Costs
BMW AG says the trade war between China and the U.S., exchange rates and costlier materials will cut profits at least €1 billion ($1.1 billion) next year.
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BMW AG says the trade war between China and the U.S., exchange rates and costlier materials will cut profits at least €1 billion ($1.1 billion) next year, Bloomberg News reports.
Chief Financial Officer Nicolas Peters tells investors that trade issues will account for roughly half the total hit. He says profits also are being squeezed the cost of technology needed to meet tougher pollution rules, not all of which can be passed along to the customer.
BMW is attempting to lower expenses in part by reducing the number of piston engine variants it makes, according to Peters.
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