MUNICH (Dow Jones)–BMW promises continued high profitability, even with continued high investments and the ramp-up of fully electric cars, which initially have lower margins. “We are already profitable with electric vehicles today,” said CEO Oliver Zipse at the presentation of the vision vehicle for the coming vehicle generation. “The new class will be very profitable,” the manager announced to journalists, without naming a specific margin target for the new all-electric cars. “We will (but) definitely not be less profitable than today,” he added.
The Munich group does not traditionally name any profitability targets for individual vehicle classes. What is certain, however, is that BMW is not losing or will not lose any money selling electric cars, said Zipse in the run-up to the IAA Mobility in Munich. The target range for the operating margin in the automotive business will also be between 8 and 10 percent in the coming years. For this year, the group raised the forecast range to 9 to 10.5 percent in the summer in view of good sales prices and sustained strong demand.
BMW presented the first vehicle of the new class in Munich on Saturday. Six models of the new generation are to be launched within 24 months of the start of production in 2025. The first car is scheduled to roll off the assembly line in Debrecen, Hungary, followed by Munich, China and Mexico, Zipse confirmed. The cars in the new class are said to have about 30 percent faster charging times and a range that is about 30 percent longer. The model presented on Saturday will start in the 3-series segment, which is important for BMW.
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(END) Dow Jones Newswires
September 02, 2023 08:42 ET (12:42 GMT)
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