BMW has warned that recently imposed tariffs by the US and EU could result in a loss of at least €1 billion this year, exacerbating challenges in the global automotive sector. Faced with new levies on US exports and Chinese electric models, the company reported an 8.4% drop in annual revenue due to geopolitical tensions. CEO Oliver Zipse expressed cautious optimism that not all tariffs would be in place for long. With half of BMW's US-made cars exported, they remain susceptible to further trade restrictions. Meanwhile, Daimler Truck has begun cost-cut measures amid similar trade uncertainties.
BMW's chief executive, Oliver Zipse, labeled the €1 billion loss projection as 'conservative' and expressed hope that not all tariffs will extend through 2025.
The situation leaves BMW vulnerable as approximately half of its US-made cars are exported, primarily to Germany, China, Canada, and the UK, amidst potential new tariffs.
With trade uncertainties affecting first-quarter orders, Daimler Truck has initiated a €1.1 billion cost-reduction programme, signaling broad impacts on the automotive industry.
Finance minister Éric Lombard criticized the transatlantic tariff disputes as 'idiotic,' emphasizing the need for constructive dialogue to resolve trade tensions.
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