BMW Cuts Outlook as China Woes Offset Growth in U.S. and Europe

 

 

“BMW slashed its profitability forecast for the year as the German premium-car maker continues to face weak demand in China.

 

The group, which houses its namesake brand as well as the Mini and Rolls-Royce marques and a motorcycle business, said Tuesday that sales volumes had grown in Europe and the Americas in the first nine months of the year, but not in China.

 

The company said vehicle deliveries were up 8.8% globally at 588,300 units in the third quarter, with 25% growth in the U.S. and 9.3% in Europe, but down 0.4% in China. BMW said it was lowering its volume forecasts for the Chinese market in the fourth quarter.

 

The company also said a reduction in commissions from Chinese banks to dealerships for the brokering of financial and insurance products to customers would weigh on profitability.

 

President Trump's tariffs also have taken a toll on the group since their implementation earlier this year.

 

The company said it expects earnings before taxes to decline slightly this year from 10.97 billion euros, equivalent to $12.85 billion, in 2024. It had previously forecast flat earnings before taxes. Meanwhile, free cash flow in its automotive segment should be above 2.5 billion euros this year compared with a prior estimate above 5 billion euros.

 

BMW said it would publish third-quarter results Nov. 5.” [1]

 

1. BMW Cuts Outlook as China Woes Offset Growth in U.S. and Europe. Calatayud, Adria; Orru, Mauro.  Wall Street Journal, Eastern edition; New York, N.Y.. 08 Oct 2025: B3.