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BMW reports lower Q3 earnings as China woes mount
BMW’s net profit fell by nearly 15% in the July to September quarter, as its business in China weakened amid intensifying competition from Chinese carmakers. Sales also declined, and growth in the US and Europe only partly offset the drop in China, adding to pressure on the company to restructure and cut costs.
Net profit was €1.45 billion and sales fell nearly 6% to €30.45 billion. BMW’s deliveries in China dropped 24.8%, bringing global deliveries down 6.3%; the company has announced up to 8,000 job cuts by the end of 2027 and lowered its outlook for the year. Other German carmakers and suppliers are also reducing costs and staff as competition and weaker demand weigh on the industry.
In short
- BMW’s quarterly profit fell nearly 15%.
- China deliveries dropped 24.8%.
- BMW plans up to 8,000 job cuts by 2027.
Explained simply
BMW is a German carmaker that sells vehicles around the world, including in China, the United States and Europe. China has been a major market for foreign car brands, but local manufacturers have expanded their electric-car ranges and competed more strongly on price.
The pressure extends beyond BMW: other German carmakers and parts suppliers have also been cutting costs and jobs amid weaker demand and tougher competition. BMW’s results matter because they show how changes in China and other major markets can affect a global carmaker’s earnings and workforce.