BMW says ‘no interest’ in price war as order books bulge

bmw-says-‘no-interest’-in-price-war-as-order-books-bulge
BMW says ‘no interest’ in price war as order books bulge

BMW has forecasted strong fourth-quarter sales and stated that its order book is filled into the first few months of next year. The company does not see the need to cut prices, unlike some of its competitors. Supply chain bottlenecks have eased, improving vehicle availability, although material and logistics costs remain high. BMW’s third-quarter results were largely in line with expectations and the company’s optimistic tone set it apart from competitors who warned of a subdued market environment. CEO Oliver Zipse emphasized that BMW does not plan to cut prices to boost electric vehicle demand, particularly in China. The company aims to achieve an annual margin on earnings before interest and taxes (EBIT) in its cars division of 9.0%-10.5% and is on track to meet that target. BMW’s quarterly revenues exceeded expectations, driven by higher-priced and fully electric cars. However, group net profit declined due to the consolidation effect of its Chinese joint venture. The company experienced some relief in raw material prices but still faced challenges from currency and raw material positions. BMW did not mention high interest rates or inflation as factors affecting growth, unlike its competitors. Fully electric sales accounted for 15.1% of total sales in the third quarter, surpassing BMW’s end-year target. Models from the upper price segment, such as the 7 Series and updated BMW X7, are contributing to sales growth. The company’s free cash flow for the automotive business is on track to meet its full-year forecast.

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Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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