German Car Zone

BMW schockiert mit Milliardengewinnwarnung
just read at the online version of orf (austrian tv) that bmw is predicting a profit loss worth 1.5 billion euro (german- 1.5 millarden euro).
bmw is suspecting the high crued oil price, as well as the weak dollar and the finacial crises as reasons

Profit loss? 1.5 billion Euros?



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BMW AG report today the 2008 pre-tax profit will be much much lower than in the 2007 (7.7 billion Euros). BMW predict a 3.8 billion Euros pre-tax profit in 2008 (that's roughly 50% less than in 2007).

Since US market isn't as profitable any more as planned, the activities will shift from the prestigious volume-oriented sales to profit-oriented sales.
US sales will thus be decreased by 40,000 units in 2008. Around 20,000 units will be relocated to other more profitable markets, while the other 20k simply won't be produced.

Also the prices will increase in US market - especially for the most wanted models. That will happen in 2008, and also in 2009.

BMW will also start activities to discourage leasing - since it's not profitable enough for the BMW any more.


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Not the sales are bad - demand for BMW vehicles is strong, but not as strong as predicted (due financial crisis, high fuel prices, higher everyday expenses etc.)

But the cool-off of US economy, weak & weaker US Dollar, high energy (incl. gas & oil) & raw material prices hit BMW badly this year. And the 2009 forecast is not good at all - since the economy cool-off is spreadng into europe & other parts of the world..


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There's some panic in da haus!

sorry for the bad translation and thx for correcting

Yeah, no need to worry, truck sales are predicted to stay at ATH for a foreseable future. The market for fun and sporty, light, driver oriented vehicles is however unexplored by BMW as this segment is no longer a market of interest for the Bavarian truck maker.

Give me a CSL or go to the place downstairs where the bad peolpe burn in eternity...