Car manufacturer BMW is also seeing profits plummet

This article was last updated on November 6, 2024

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Car manufacturer BMW is also seeing profits plummet

The profit of the car manufacturer BMW plummeted last quarter. In the third quarter, the German car company’s profit fell by almost 84 percent. The decline is mainly due to declining demand in China. In addition, BMW had to recall 1.5 million cars in September due to a defective braking system.

BMW achieved a net profit of 476 million euros last quarter. Last year this was 2.9 billion euros in the same quarter. Sales fell by 4.5 percent.

The recall will cost BMW many hundreds of millions of euros, the company said in its quarterly figures. The German company previously had to adjust its profit forecast for this year.

Last month, BMW had to recall cars again. This time it involved almost 700,000 cars in China. Due to a technical problem, there was a risk that a fire could break out in the cars. What this will cost the company is not included in these quarterly figures.

Volkswagen

The European industry has been dealing with problems for some time. Manufacturers are experiencing declining demand and increasing competition from China. German manufacturers hoping for support from the government.

It turned out last week that Volkswagen is also struggling with disappointing car sales. Profits fell by 42 percent. According to the company, this was mainly due to the high labor costs in Germany. The manufacturer plans to close three factories. Stellantis, owner of Fiat and Jeep, among others, also announced in late September already indicates that it will make less profit this year.