BMW warns no-deal Brexit poses risk to earnings momentum

BMW warns no-deal Brexit poses risk to earnings momentum

BMW mentioned its full-year earnings will are available on the higher vary of its steering, however warned a no-deal Brexit would price a whole bunch of thousands and thousands of euros.

BMW expects its automotive revenue margin might be between 2 p.c and three p.c, the excessive finish of the vary it forecast for the yr, CFO Nicolas Peter mentioned Wednesday.

Free money circulate might be clearly above the 1.5 billion euros ($1.eight billion) guided beforehand, he mentioned.

Whereas there may be optimism on earnings, the manager mentioned he’s involved about commerce talks between the European Union and the U.Ok. The tariffs on autos that may observe a tough Brexit would price BMW a “mid-three-digit” million-euro quantity per yr, Peter mentioned.

BMW would attempt to offset the losses by elevating costs on automobiles imported to the U.Ok. and any Oxford, England-made Mini autos offered on the continent.

“It is some huge cash and we’ll must react,” Peter advised reporters throughout an internet roundtable dialogue. He mentioned the measures wouldn’t totally compensate for the damages.

Brexit talks are hanging within the stability two weeks earlier than the U.Ok. will drop out of current buying and selling preparations with the EU. Leaders on either side have mentioned they’ll proceed with talks, however have warned that an settlement won’t be reached.

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