BMW Slows China Sales Outlook, Supports Dealers Amid Profit Drop
BMW is adjusting its financial outlook for the fourth quarter in China, following a sales slowdown in the third quarter. The company is supporting its dealers in the region and has lowered its profit forecast for the current year.
BMW's sales in China dipped by 0.4 percent in the third quarter, contributing to a profit warning. Despite this, the company reported a global sales increase of almost 9 percent for the same period, partly due to a weak prior-year quarter affected by brake problems. BMW's operating profit is now expected to be slightly below last year's level.
The German automaker is financially supporting its dealers in China to help navigate the slowdown. BMW's Chairman of the Board of Management, Oliver Zipse, is likely held responsible for the company's financial performance, although specific criticisms are not detailed. BMW has also lowered its forecast for the current year and expects car refunds in the high three-digit million range to come in 2026, not this year. The delayed refunds negatively impact BMW's free cash flow.
BMW is adjusting to the challenges in China, supporting its dealers, and managing expectations. Despite the setbacks, the company remains focused on its global growth and is working to mitigate the impact of delayed car refunds on its free cash flow.
