It said in a statement that it faces “unusual challenges” with a decline in its quarterly profits due to declining sales in China and the recall of cars, in the latest indication of the crisis sweeping the automotive sector in Europe.
“And she announced”BMW“Wednesday in Munich The group’s net profits fell by 84 percent to 476 million euros (about 512 million dollars), which is even worse than analysts’ expectations.
And it went down Revenue By 16 percent to 32.4 billion euros (about 34.8 billion dollars) due to a decline in sales.
The group said there were “unusual challenges” in the third quarter, especially “weak demand in… China“As well as problems with the brake system, which led to a costly recall of 1.5 million cars.
The costs of technical measures and delivery interruptions due to problems with brakes supplied by Continental affected the profitability of BMW in its main business segment of automobile manufacturing.
Due to the company’s faltering activity in China, which was characterized in the past by high growth, the profit margin before interest and taxes in the automotive division fell by 7.5 percent percentage points to 2.3 percent, and this was a greater decline than experts had actually feared.
Like other German automakers, the Munich-headquartered manufacturer has become highly dependent on China, basing about a third of its sales there.
BMW had already lowered its forecasts last September due to these problems.