BMW warns on profits as it counts cost of plan for 8,000 job cuts

BMW has cut its forecast for this year’s profit margin to between -0.5% and 0.5%, its second downgrade in a year. It says restructuring costs, including 8,000 planned job cuts in Germany, are adding to pressure from Chinese competition and weaker sales in China.

Third-quarter revenue fell 6% to €30.4bn, while pre-tax earnings dropped 11% to €2.1bn. Sales in China were down 22% in the first nine months; BMW said this reflected the wider market downturn. Its core car business had a 3.4% operating margin, or more than 2% excluding restructuring charges, and the company is accelerating management cuts as it launches its new electric vehicle range in China.