BMW profit falls almost 35% as China deliveries drop

BMW reported second-quarter net profit of 1.2 billion euros, down almost 35% from a year earlier, as the German carmaker said difficult conditions in China hit its results.

The premium carmaker said vehicle deliveries rose slightly in Europe and the United States but fell 30.2% in China during the quarter.

BMW finance chief Walter Mertl said competition in the global automotive market had intensified and that the company would reduce an unspecified number of jobs to lower costs.

“We are intensifying and accelerating our efficiency measures,” Mertl said. “Our goal is to reduce complexity and establish a sustainably lower cost base.”

A BMW source told AFP on Wednesday that the company would offer severance to almost half of its German employees, with a view to cutting about 8,000 jobs by the end of 2027.

BMW confirmed its adjusted annual guidance, saying it expected a significant decrease in profit. The company, which owns Mini and Rolls-Royce, issued a profit warning last month and said the margin at its core cars business could be as low as 1% this year, citing weakness in China.