The financial affairs of the BMW automobile concern have not been so bad in the last four years. According to Bloomberg, the results for the third quarter of 2024 simply shock market experts. The reason is too high repair costs for hidden defects and weak demand in the Chinese market.
BMW's profit before interest and taxes was only 2.3%. This is significantly lower than the 2024 target of at least 6%, and approximately at the level of the second quarter of 2020, when global trade had to deal with the consequences of the coronavirus pandemic.
In September, BMW had to adjust its profit forecasts for this year, when 1.5 million cars were recalled due to a faulty braking system. It cost the giant $ 1.1 billion, plus BMW also had to suspend deliveries of hundreds of thousands of more expensive cars.
Moreover, weakening demand in China and Europe also affected sales and reduced margins. In China, the largest market for BMW, sales fell by 30% in three months as consumers cut spending on luxury goods and local automakers offer cheaper alternatives.
EADaily previously also informed about the big problems of the German company Bosch.