BMW Slashes 2025 Outlook as China Sales Lag
BMW has revised its financial outlook for the year, citing weaker-than-expected sales in China during the third quarter. The company now anticipates a slight decrease in its pre-tax result, contrary to its earlier prediction of profit at the 2024 level.
The German automaker attributed this change to delayed tariff refunds, which have significantly reduced its forecast for free cash flow. These refunds, amounting to hundreds of millions, are now expected in 2026 instead of this year.
BMW has announced it will financially support its dealers in China to help mitigate the impact of weaker sales in the region. The company's stock price fell by approximately one percent in after-hours trading following the announcement. Oliver Zipse, the CEO (Vorstandsvorsitzender) of BMW, will oversee managing the financial impacts of these changed forecasts in the Chinese market.
BMW's revised financial outlook reflects the challenges faced in the Chinese cars market. The company is taking steps to support its dealers and manage the financial impacts, with CEO Oliver Zipse at the helm. Despite the setback, BMW's long-term prospects remain unchanged.
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