BMW reports a drop in quarterly profit amid problems in China

BMW's quarterly results

The German automaker BMW reported that its net profit in the third quarter fell by almost 15% to 1.45 billion euros, while sales dropped by nearly 6% to 30.45 billion euros. This was reported by Deutsche Welle citing company data. The main reason for the decline was named as BMW's weak business in China: although sales in the US and Europe grew compared with last year, this only partially offset the Chinese downturn.

China drags down global sales

BMW's deliveries in China, which were already at their lowest level since 2017 last year, fell by 24.8% in the quarter, reducing global deliveries by 6.3%. Chief Executive Milan Nedelkovic said the company would 'purposefully intensify and accelerate structural measures.' BMW lowered its forecast for the current year, citing a faster-than-planned restructuring that includes 8,000 job cuts in its home market.

Context: a crisis across the entire German auto industry

BMW's problems fit into a broader picture: German automakers are struggling to compete with Chinese companies in the electric vehicle market and are responding with cost cuts. Volkswagen, the world's second-largest carmaker, posted its worst quarterly results in more than a decade in October and plans to cut about 15% of its workforce worldwide — around 100,000 jobs — by the end of the decade. BMW announced a reduction of up to 8,000 jobs (about 5% of its workforce) by the end of 2027. Auto parts supplier Schaeffler announced on Tuesday plans to cut nearly 3,500 jobs and close five sites in Europe by 2028, with three-quarters of the cuts and four of the five closures affecting Germany. Bosch, the world's largest supplier, announced last year the elimination of 13,000 jobs, mostly in its automotive division.