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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.
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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.
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