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BMW: 'no profits in 2009'
18 March 2009
BMW has warned that it is not aiming to make a profit in 2009 and says that it will focus instead on managing costs and cash flow.
The announcement comes just days after BMW posted 2008 profits of just €330m (£303m), down almost 90 per cent on the previous financial year.
Read more on BMW’s financial troubles in 2008
BMW expects further difficulties this year as global car markets could drop as much as a further 20 per cent. However, it believes that its sales will begin to recover in 2010.
A significant proportion of BMW’s planned recovery will be due to the launch of several new models. The new – and highly profitable – BMW 5-series GT crossover, which arrives on the market late this year, should deliver a boost in sales, while replacements for both the 5-series and 3-series will reach dealerships during 2010 and 2011.
BMW chief executive Norbert Reithofer said, “2009 will be a transition year. This is why we have set clear priorities: liquidity, free cash flow and working capital, fixed costs and investments.”
Matt Rigby
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