EV investments push BMW’s results down by 20%
BMW announced its second-quarter figures on Thursday. The operating result decreased by almost 20% to 2,2 billion euros. Over the first six months of this year (2019), the profit shrank by 49%.
Investments in electrification
The Munich-based company is investing large sums in the electrification of its car brands BMW, Mini, and Rolls-Royce. This is to the detriment of the group’s profitability. The company aims to have 25 electric models on the market by 2023.
The group sold more than 1,25 million cars in the first half of the year 2019, almost 1% more than the results of 2018. This growth is entirely due to the continuing demand for luxury cars in Asia. In Europe and the United States, car sales fell slightly. Mini sales fell by almost 4% in the first half of 2019 to 174.344 units. The number of BMW motorcycles sold amounted to 93.188, an increase of more than 7%.
This second quarter of 2019 is the last quarter of CEO Harald Krüger. The top man will make way for board member Oliver Zipse ahead of schedule. The disappointing sales are a general phenomenon in the German automotive industry. In recent weeks, Volkswagen and Daimler have also announced lower profits.