The Munich car manufacturer BMW After a slump in profits in 2024, in view of the ongoing demand flaut in China and the tariff of US President Donald Trump (78) on the hat. The group result before taxes was expected in 2025 at the previous year’s level, the profit margin in the automobile segment is between 5 and 7 percent, BMW said on Thursday. The effects from the customs increases entered into force until March 12, it said. Among other things, Trump has introduced tariffs worldwide on aluminum and steel and threatens to pay additional taxes on cars from Europe. Among other things, BMW imports limousines from the 7 Series and 5 series from Germany.
Sales should also be easy to increase, including because several new models have recently come onto the market and the lower inflation and key interest rates in several countries also boosted demand. The Munich people also expect slightly growth in electric cars. The new class electric vehicles that will come onto the market from the end of the year are to bring thrust. The SUV IX3, followed by a limousine.
In 2024, BMW’s input tax was broken down by 35.8 percent to just under eleven billion euros. The sales return for the company decreased to 6.3 percent after reaching 9.8 percent in 2024. An important reason for this were problems with a braking system that of Continental was delivered and at times the deliveries in several countries brought them to a standstill. In addition, there was the real estate crisis in China, which wealthy consumers took the desire to buy a new car. Sales fell by 8.4 percent to 142.4 billion euros.
BMW: lower dividend
Analysts surveyed by LSEG had an average of 5.2 percent to EUR 147.4 billion and a break -in of input tax profit by 31.5 percent to 11.7 billion euros.
The shareholders now have to be satisfied with a lower dividend. The board proposes a distribution of 4.30 euros per ordinary for 2024. In the previous year it was six euros. In the case of preferred shareholders, the dividend is two cents higher. However, the dividend in the 2024 financial year is still the fourth highest in the company’s history. At the same time, further money should be given to the shareholders via stock returns.