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BMW Forced To Lower Profit Outlook Due To Trade Tensions And Price Wars

Oct. 01, 2018 6:30 AM ET by Jared Rosenholtz Industry News / 1 Comment We wouldn't be surprised if other automakers are hurt as well. 2018 was expected to be a tough year for BMW, and this prediction has turned out to be true according to the company's latest financial projections. BMW says it will not reach its expected pretax profit and has lowered its profit margin projections. This decision comes in light of intense price wars and more strict emissions regulations. We've already seen trade tensions heat up between the US and China as well as the repercussions from the new WLTP emissions regulations with several cars being discontinued, including the Volkswagen Golf GTI in Europe. BMW was even forced to end production of the current F80 M3 due to the new WLTP regulations. These new rules have "led to significant supply distortions in several European markets and an unexpected intense competition. Thanks to its flexible production and sales strategy, the BMW Group is responding to this increased competition and is reducing its volume planning to focus on earnings quality" BMW said in a statement. The company will still make a profit in 2018, but it will be lower than expected. Instead of earning an 8-10% profit, BMW is now expected to have a profit of 7%, which is the same as in 2017 and inline with the rest of the automotive industry. In addition to the new emissions regulations, BMW also has its hands full dealing with trade tensions. "The continuing international trade conflicts are aggravating the market situation and feeding uncertainty. These circumstances are distorting demand more than anticipated and leading to pricing pressure in several automotive markets" BMW said. BMW currently builds many of its cars in the US and Germany but will build the upcoming iX3 electric SUV in China. The ongoing trade tensions will be something to monitor and we wouldn't be surprised if other automakers faced similar challenges. BMW BMW BMW BMW

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BMW M3 Sedan Jared Rosenholtz Editor-at-Large After graduating with an MBA, Jared pursued his love of cars by becoming an automotive journalist. An internship with CarBuzz grew into his current position as Editor At Large. Jared now spends most of his time evaluating new vehicles and chasing the latest news stories in the automotive industry. When he’s not attending Cars & Coffee events on the weekend, Jared loves to watch NFL football and cruise around with the top down in his German convertible. Contact Jared @Carsnbites @jar_rosenholtz LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top