BMW's profit is similar to the collapse of several of its competitors. The latest quarterly accounts show a loss of 84 percent.
- Technical problems and signs of weakness in the Chinese market negatively affect BMW's accounts.
- The profit falls drastically and the turnover is reduced considerably.
- Challenges in China and problems with braking systems are weighing on profitability and profits, which have fallen 84 percent in three months.
BMW experienced a significant drop in profit in the third quarter of 2024. This is primarily due to technical challenges with braking systems and a slowdown in the Chinese market.
The group's profit fell by 84 percent to DKK 3.5 billion, while revenue fell by almost 16 percent to DKK 240 billion.
The problems with braking systems supplied by Continental have led to costs for technical measures and a stoppage of deliveries.
This is written by the German media Welt .
This has had a negative impact on the profitability of BMW's core business – namely the production of cars. At the same time, BMW is experiencing challenges in the Chinese market, which has previously been an uninterrupted engine of growth for the car brand.
Due to the problems, the operating margin fell in the car department at BMW, which i.a. also builds motorcycles, by 7.5 percentage points to 2.3 percent. This decline is more significant than analysts had expected.
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Even so, BMW already in September lowered the brand's expectations for the year's profit due to the mentioned problems.
The brake problem means, among other things, that BMW must both detain brand new cars and seek out drivers with older models. Something that analysts point to will cost the car brand billions of kroner.
At Audi, the quarterly accounts, where the profit has plummeted by 84 percent, also look gloomy. This shows that the challenges in the automotive industry are widespread and affect several of the major actors. Read more about it here .
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