Dealers' #1 source for auto industry news, content, coaching & analysis

BMW anticipates weaker fourth quarter due to inflation and weak demand

This outlook comes after a difficult third quarter.

According to slides released on BMW’s website Tuesday, the automaker anticipates its full-year margin to be in the lower half of its 6-7% objective and its fourth-quarter pre-tax earnings to be far lower than those of the previous year.

The announcement follows an investor call (not open to the public during a closed period) ahead of the company’s upcoming annual earnings report, set to be released on March 14. On the slides, the automaker attributed the decline to inflation and higher fixed costs from unwinding inventory. 

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

This outlook comes after a difficult third quarter, which saw a 61% drop in profit, missing analyst expectations. The decline was driven by weaker sales in China and ongoing brake issues affecting over 1.5 million vehicles. The automaker expects the brake issue to be resolved soon, with no impact on its 2025 earnings.

BMW’s CEO, Oliver Zipse, also announced at a conference in Berlin that the company will propose a reduction in EU tariffs on U.S. car imports from 10% to 2.5%, which aligns with the current U.S. import tariff rate.

However, last year, the automaker reported it sold a total of 117,506, an 8.9% increase from 2023. For the full year, BMW’s sales increased by 2.5%, which marked the second consecutive year that it achieved a new sales record in the U.S.

Stay up to date on exclusive content from CBT News by following us on Facebook, Twitter, Instagram and LinkedIn.

Don’t miss out! Subscribe to our free newsletter to receive all the latest news, insight and trends impacting the automotive industry.

CBT News is part of the JBF Business Media family.

Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

Related Articles

Latest Articles

From our Publishing Partners