BMW’s weather‑tarp‑storm may ride profit plunge

BMW Sustains 2025 Goals Amid Q2 Profit Drop

German automaker BMW reaffirmed its 2025 earnings outlook, even as quarterly net earnings fell a third. The decline stemmed partly from U.S. import tariffs, yet the company highlighted its significant American operations as a buffer.

U.S. Tariff Landscape

• U.S. import duties imposed on German cars reached 27.5% in April, part of President Trump’s trade tariff surge.
• Under a new U.S.–EU agreement, duties are slated to reduce to 15% from August.

BMW’s finance chief Walter Mertl emphasized that the company’s diverse global footprint enables swift adaptation to market shifts.

Second‑Quarter Financial Highlights

• Net profit declined 32% YoY to 1.8 billion euros ($2.1 billion).
• Revenues dropped to 34 billion euros.
• Tariffs shaved approximately 2 percentage points off auto‑segment margins during April–June, with a projected annual hit of 1.25 points.

BMW retained its full‑year guidance, targeting auto‑segment margins between 5% and 7%, slightly below its long‑term aim of 8%–10%. Earnings before tax for 2025 are expected to match last year’s near‑11 billion euros level.

U.S. Market Performance

• U.S. deliveries rose 1.4% in the April–June period, while global vehicle sales increased 0.4%.
• BMW continues to export roughly half its U.S. customer cars from Europe and Mexico, exposing it to tariff risks.

China Market Challenges

• Q2 sales fell 14% amid fierce competition from local electric‑vehicle brand BYD.

Industry Perspective

Center for Automotive Research director Ferdinand Dudenhoeffer described BMW’s position as “more stable” relative to domestic rivals Volkswagen and Mercedes‑Benz, citing the U.S. plants and SUV production as key factors.

CEO Outlook

CEO Oliver Zipse welcomed the U.S.–EU tariff reduction, yet warned that new duties still burden European exporters. He called for ongoing collaboration to promote market openness.