October 28, 2020

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Car maker BMW affected by corona crisis

Car maker BMW affected by corona crisis


Photo: ANP

The German automaker BMW recorded an operating quarterly loss in the last quarter for the first time since 2009. The company was hit again by the corona crisis, which is hindering global car sales. In Europe in particular, demand for cars has declined due to temporarily closed factories and showrooms.

BMW closed the second quarter with a 22.3 percent drop in sales of EUR 19.9 billion. The automaker also recorded an operating loss (EBIT) of 666 million euros. A year ago there was still an operating profit of 2.2 billion euros. This time BMW fell below 212 million euros and a year ago it made a net profit of 1.5 billion euros.

BMW car sales, which are closely monitored by market experts, have declined by almost a quarter to 962,575 in the past six months. In Europe, Germany and the USA, demand fell the most at around 30 percent. In China, where the largest drop in sales was recorded in the first quarter, demand improved significantly from April. Ultimately, car sales decreased “only” 6 percent in the first six months.

Despite the loss, BMW continues to strive to expect a gross profit margin of 0 to 3 percent for the automotive industry for the full year. The company plans to continue investing in innovation and development and will pay more than 30 billion euros in 2025.