11:50 am, November 6, 2024
BMW has reported a 61% fall in profits after a sales slump in China and a delay in deliveries caused by a braking system issue.
The German maker posted an operating profit of €1.7bn (£1.4bn) in Q3, down from €4.35bn (£3.62bn) in the same period last year. Revenue slumped by 15.7% to €32.4bn (£27bn), below analyst expectations of €34.3bn (£28.6bn).
The company remains bullish that it will still reach its adjusted full-year financial outlook, citing an issue with a braking system supplied by Continental as holding up deliveries of new vehicles.
BMW has reported that the brake component issue has affected over 1.5 million cars so far, with delivery delays expected for around 320,000 of those vehicles.
The company said today (Nov 6) that it will hand those delayed vehicles to customers in the fourth quarter.
Last month, BMW reported that its third-quarter sales in China had dropped by a third, fuelled by a weak economy and increased local competition.
German rivals VW, Audi and Mercedes-Benz are also facing challenges following a sales slump in the region.
In a statement, BMW chief financial officer Walter Mertl said: ‘With stringent management, BMW Group remains on track to hit its 2024 cash flow target.
‘In the fourth quarter, sequentially higher deliveries and a stronger product mix will support our earnings.’
