Like other German automakers, BMW is also in the red in the second quarter due to the corona pandemic. For the group, it was the first quarterly loss in more than ten years.
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BMW car manufacturer
This is the first quarterly loss since 2009. BMW had already announced red figures for the second quarter as the three months in Europe and America were the hardest hit by production and sales stoppages due to the pandemic.
Investments are postponed
Sales fell 22% to nearly € 20 billion as the company sold far fewer cars. Before interest and taxes, the loss amounted to 666 million euros, a little more than what analysts previously estimated. The automotive division resulted in an operating loss of several billion, which was mitigated by compensation within the group.
“In the context of the current situation, we are postponing projects or testing them,” said CFO Nicolas Peter. BMW only wants to reduce research and development with caution.
As announced, more than 30 billion euros must be spent by 2025. In the second quarter, research and development spending increased by 3.5% to 1.5 billion euros.
BMW hopes for China
In the second quarter, the BMW brand delivered 430,344 cars, 23% less, including the small Mini car brand and Rolls Royce luxury cars, which were down by a quarter. In China alone, the most important single market, BMW has sold 17% more cars than a year ago. The development of the Chinese joint venture has gone well, he said.
However, BMW has high hopes for the most important single market, China. The positive development of the local joint venture contributed to an improvement in the financial result, he said.