Mexican Media Brands
BMW: U.S.-China Trade War Could Cut Earnings €500 Billion
BMW AG estimates that its earnings could drop €500 million ($578 million) in 2019 is the trade war between the U.S. and China persists.
#economics
Share
BMW AG estimates that its earnings could drop €500 million ($578 million) in 2019 is the trade war between the U.S. and China persists.
Chief Financial Officer Nicholas Peter tells Automobilwoche that tit-for-tat import tariffs by the two countries have hurt shipments of SUV/crossovers to China from BMW’s factory complex in Spartanburg, S.C.
Each country has imposed 25% import taxes on the other’s vehicles. Peter says the result already has cut the plant’s operating earnings by €300 million ($347 million).
Last month BMW warned that its margins will shrink this year because of trade issues and such factors as unfavorable exchange rates, the cost of advanced mobility technologies, higher-than expected warranty costs and new emission procedures in Europe.
RELATED CONTENT
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.