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
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
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.