BMW warns of significant profit fall in 2019 seeks 12 billion euros in cuts

FILE PHOTO: The BMW logo is seen on the wheel of a vehicle presented at the Auto China 2016 auto show in Beijing, China, April 29, 2016. REUTERS/Damir Sagolj/File Photo

MUNICH (Reuters) – BMW (BMWG.DE) on Wednesday said it expected group pretax profit to fall by more than 10 percent in 2019 and announced a sweeping 12 billion euros ($13.6 bln) cost savings and efficiency plan to help offset higher technology investment and currency costs.

Last week BMW said it would step up cost cutting in anticipation of a difficult year, as it reported a 7.9 percent fall in 2018 operating profit.

BMW said it would expand group-wide efforts to increase efficiency and lower costs. “By the end of 2022, it expects to leverage potential efficiencies totaling more than 12 billion euros,” BMW said in a statement.

Reporting by Edward Taylor; Editing by Tassilo Hummel

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