Business & Finance
BMW Issues Second Profit Warning Amid 8,000‑Job Restructuring
BMW has issued a second profit warning in a year, citing the costs of a restructuring programme that includes 8,000 job cuts in its home market. The German automaker said the restructuring, combined with ongoing competition from China, has forced it to cut its profit margin to a range of –0.5% to 0.5% for the year. Earlier this year, BMW had projected a margin of 4–6%. The company reported an 11% drop in third‑quarter pre‑tax earnings to €2.1 bn (£1.75 bn). Sales in China fell 22% in the first nine months, a decline the company said reflected the broader downturn in that market. CEO Milan Nedeljković said the industry requires “decisiveness and swift implementation” and that BMW will intensify structural measures, noting China remains a key focus. The group’s Neue Klasse model line will launch in China this month with the iX3. BMW’s operating margin in its core automotive business narrowed to 3.4%, above analysts’ forecast of 3.1% but down from 5.2% a year earlier. Excluding restructuring charges, the margin would be above 2%, within its previous forecast range. Revenue fell 6% to €30.4 bn in the third quarter, hurt by declining sales in China. Mercedes‑Benz also reported lower third‑quarter profits, while Porsche rebounded slightly after last year’s steep charges as it overhauls its model lineup and retreats from China.