{"id":4372,"date":"2025-03-15T22:58:33","date_gmt":"2025-03-16T02:58:33","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/03\/15\/bmw-expects-e1-billion-hit-to-earnings-from-tariffs\/"},"modified":"2025-03-15T22:58:33","modified_gmt":"2025-03-16T02:58:33","slug":"bmw-expects-e1-billion-hit-to-earnings-from-tariffs","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/03\/15\/bmw-expects-e1-billion-hit-to-earnings-from-tariffs\/","title":{"rendered":"BMW expects \u20ac1 billion hit to earnings from tariffs"},"content":{"rendered":"
\n

BMW said newly imposed trade tariffs could dent the carmaker’s earnings by \u20ac1 billion this year, as escalating trade tensions between China, Europe and the US take a mounting toll on global companies’ finances.<\/p>\n

The premium carmaker forecast an earnings margin for its cars segment of 5-7% in 2025, factoring in the impact of a full year of EU duties on its China-made EV, and US duties of 25% on steel and aluminium and on vehicle imports to the US from Mexico.<\/p>\n

Further tariffs looming from the European Union and the US would have a far greater impact on the carmaker, which is the highest automotive exporter by value from the US and exports over half its vehicles made in Germany outside the EU.<\/p>\n

Still, executives struck an optimistic tone in a press call at the German group’s annual results conference, saying they did not expect the tariffs to remain in place for the whole year.<\/p>\n

“If the situation changes, so does our outlook,” CFO Walter Mertl said.<\/p>\n

Germany’s premium carmakers who have long relied heavily on strong China sales and US exports are battling a war on two fronts, as fast-growing EV competitors in China win market share and Donald Trump’s tariffs upend their global supply chains.<\/p>\n

“In an environment where China has become a much more difficult market, and no improvement in sight, the dependency on the US has increased. Tariffs are therefore a significant risk,” said Daniel Schwarz of Stifel Research.<\/p>\n

“The impact can be mitigated by producing more in the US. But this comes at a cost,” he added, pointing to the scale advantages of BMW’s current set-up which focuses on SUV production in the US and salons in Europe.<\/p>\n

Still, unlike its competitors Porsche, Mercedes-Benz and Volkswagen’s Audi, BMW says it is not undertaking a major restructuring of its European operations to lower costs.<\/p>\n

Operational costs peaked in 2024 and there are no plans to cut staff in Germany, executives said on a press call.<\/p>\n

BMW’s net profit slumped by over a third in 2024 to \u20ac7.68 billion, in line with market expectations, after weak sales in China and Germany as well as delivery hold-ups, because of problems with a brake, dented performance.<\/p>\n

Fourth quarter profit dropped 41%, in line with warnings from the carmaker in January that higher fixed costs from unwinding inventory would hit its earnings in the last three months of 2024.<\/p>\n

The group proposed an increased payout ratio of 36.7%, among the highest in its history, consisting of a dividend of \u20ac4.32 per preferred share for 2024, but down from \u20ac6.02 paid out for the previous year.<\/p>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

BMW said newly imposed trade tariffs could dent the carmaker’s earnings by \u20ac1 billion this year, as escalating trade tensions between China, Europe and the US take a mounting toll on global companies’ finances. The premium carmaker forecast an earnings margin for its cars segment of 5-7% in 2025, factoring in the impact of a […]<\/p>\n","protected":false},"author":1,"featured_media":4373,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[19,20],"tags":[],"class_list":["post-4372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-news","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/4372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=4372"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/4372\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/4373"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=4372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=4372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=4372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}