AutoBeta(AutoBeta.net)03/21 Report--

BMW Motor Group recently issued a profit warning that due to the adverse effects of trade conflicts, increased investment in electrification, stricter carbon emissions regulations, higher manufacturing costs, exchange rate changes and rising raw materials, and many other factors, its 2019 profit will be "much lower" than the 2018 level, and pre-tax profit is expected to fall by more than 10%. To this end, the company will carry out a cost-saving plan of 12 billion euros ($13.63 billion).

It is understood that BMW plans to phase out some models and will achieve cost optimization of more than 12 billion euros by the end of 2022. Some of this will come from digital simulations to reduce vehicle development time by as much as 1/3. BMW also said it would no longer produce a successor to the 3-Series Gran Turismo and would cut more derivatives in the future, eliminating about half of its transmission-modified models from 2021.

BMW said profit margins in the auto industry would be between 6% and 8% this year, below its long-term target of 8% to 10%. BMW's profit margin was 7.2% in 2018. In 2018, BMW Group's revenue reached 97.48 billion euros, basically the same as the previous year; pre-tax profit reached 9.815 billion euros; pre-tax profit margin was 10.1%, achieving the original target of more than 10%. BMW's shipments in Europe also fell by 2% in February.

According to BMW, its new model, the BMW X7 full-size crossover and improved 3-series sedans, will help it boost all major sales and revive its car business in the second half of this year.

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