BMW fourth quarter off to good start, sees double-digit 2021 margins
FRANKFURT, (Reuters) – BMW’s October sales were better than anticipated and November sales are on a positive start, its CFO stated Tuesday. He also said that he expects the company to achieve the top end of his 9.5%-10.5% automotive profit forecast for this year.
These margins are unlikely to last. However, easing semiconductor supply chain bottlenecks in the second quarter of 2022 may still help boost growth, Nicolas Peter, Chief Financial Officer, stated at a Frankfurt roundtable discussion with journalists.
Peter declared, “I would not be surprised if we fail to achieve the upper end our current margin target.”
According to the company’s CFO, electric vehicle sales will at least double by 2022. The firm also plans on increasing the average price of all new vehicles by 1%.
He stated that BMW had secured battery cells supply for 2025. The company is currently in negotiations with the manufacturers to secure contracts for the latter half of the decade.
He said that BMW’s plan to increase its China joint venture BMW Brilliance stake from 50% to 75% should be completed in the first quarter in 2022 after the country has removed the restriction on foreign ownership exceeding 50% for local companies.
German carmaker Volkswagen reported an increase of 42.4% in its third quarter net profit to 2.58 Billion Euros ($2.93 Billion). The strong demand for electric cars and increased prices were offset by lower sales due to chip supply concerns.
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