Following the profit warning from Daimler, BMW is sticking to the outlook for the current year.
The business outlook of the company is unchanged, as the Munich premium manufacturer announced. In view of the discussion about additional tariffs in world trade, BMW continues to evaluate different scenarios and possible strategic options. The forecasts for 2018 assume that the global economic and political conditions will “not change significantly”.
Daimler had announced a profit warning on Wednesday due to higher Chinese import duties on vehicles manufactured in the US surprisingly. Due to import tariffs, the Group’s SUV sales in the important Chinese market are likely to decline. In addition to the trade dispute, the diesel scandal and the new WLTP exhaust and consumption test process are taking their toll on the Stuttgart-based company.
BMW has the world’s largest plant in Spartanburg, South Carolina, with more than 9,000 employees, producing the lucrative X models for the US and the world market. About 70 percent of the vehicles manufactured there are exported worldwide according to earlier data. BMW is the largest vehicle exporter in the USA.
The Bavarian manufacturer also stated on demand that they had been intensively involved in the past few years with the topics WLTP and RDE and had been prepared accordingly.
The DAX Group continues to see sales and sales in 2018 slightly above the record level of the previous year. Profit before taxes is also expected to increase slightly, provided that the proposed joint venture with Daimler for mobility services is approved by the competition authorities.