BMW third-quarter profits decline amidst China market challenges

Net profit for the quarter reached 1.45 billion euros ($1.61 billion), representing a nearly 15% decrease. Sales also experienced a decline, falling approximately 6% to 30.45 billion euros, according to the company’s statement.

The primary factor contributing to this downturn was BMW’s performance in the Chinese market. While car sales increased in the US and Europe compared to the previous year, this growth was insufficient to fully compensate for the losses in China.

Deliveries in China, already at their lowest point since 2017 last year, decreased by 24.8% during the quarter, resulting in a 6.3% overall reduction in global deliveries.

CEO Milan Nedeljkovic stated that the company would be “specifically intensifying and accelerating structural measures.”

BMW has revised its outlook for the remainder of the year, citing the accelerated implementation of restructuring initiatives, which include 8,000 layoffs within Germany.

Several major German automakers, including Volkswagen and Mercedes-Benz, are implementing cost-cutting strategies in response to rising competition from Chinese manufacturers, particularly in the electric vehicle sector.

The Volkswagen Group recently reported its worst quarterly results in over a decade. The company is considering reducing its global workforce by approximately 100,000 employees by the end of the decade, representing roughly 15% of its workforce. BMW plans to reduce its workforce by up to 8,000 employees—around 5% of its total—by 2027.

Schaeffler, a German automotive parts supplier, announced plans to eliminate approximately 3,500 jobs and close five European facilities by 2028. Approximately three-fourths of these job cuts and four of the site closures will be located in Germany.

Bosch, the world’s largest automotive supplier, previously announced plans to cut 13,000 jobs, primarily within its automotive division.