BMW warns China-U.S. trade dispute will hit 2019 earnings
BMW Group expects a hit to earnings of up to half a billion euros ($579 million/4.01 billion yuan) next year if tariffs between the United States and China remain in place, CFO Nicolas Peter told Automobilwoche magazine, a sibling publication of Automotive News China.
Tariffs between the United States and China have dented exports of crossovers from BMW's U.S. plant in Spartanburg, S.C., to China, resulting in a hit to earnings of just below 300 million euros, Peter said, according to an extract of an article to be published on Oct. 13.
"If the tariffs remain in 2019, it could have a full-year impact of half a billion euros," Peter added.
In September, BMW cut its financial guidance, saying it now expected pretax profit to fall this year, blaming the trade war between China and the United States and a price war in the car market.
Tariffs between the United States and China have dented exports of crossovers from BMW's U.S. plant in Spartanburg, S.C., to China, resulting in a hit to earnings of just below 300 million euros, Peter said, according to an extract of an article to be published on Oct. 13.
"If the tariffs remain in 2019, it could have a full-year impact of half a billion euros," Peter added.
In September, BMW cut its financial guidance, saying it now expected pretax profit to fall this year, blaming the trade war between China and the United States and a price war in the car market.
