The carmaker BMW remains cautious on the business prospects in the tariff disputes and the impending unregulated Brexit. CFO Nicolas Peter is on Tuesday at the IAA Motor Show in Frankfurt. The further earnings outlook also applies to mid-December, the announced additional tariffs between the US and China would come into effect.
Unregulated Brexit would lead to higher Prices for BMW
An unregulated Brexit would also mean “a deterioration compared to today’s status,” said the manager. “The consequence would be that we have to raise prices in different markets.” The volume would then go down. “We have to take something back at Oxford,” said Peter. In the UK, BMW manufactures the small car series Mini at the main plant. The first concrete measure is that production will not take place on October 31 and November 1 in order to be logistically secured. As things stand, the UK is leaving the EU by October at the latest.
Other Cars than SUVs are also important for BMW
Regarding the increasing share of SUVs in the sold-off cars, the CFO said that they also see growth in the flatter cars and invest “both-legged” in city SUVs and sedans. “We do not rely on a single card, neither in the drive range nor in the concept area, even with body concepts,” said Peter. In August, the city SUVs made up almost half of all BMW vehicles sold, the company sold a good third more than in the same month last year.
The decision to produce another model in China’s most important single market would fall in the coming months, Peter said. Also, the SUV X5 stands after other X models on the list of eligible cars.