BMW’s 2024 profit margin to hit lower end of guidance due to premium car sales drop

Published 28/01/2025, 15:44
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Investing.com -- German automaker, BMW (ETR:BMWG) AG, has stated that the profit margin for its automaking segment in 2024 will likely be at the lower end of its previously forecasted 6-7% range. This adjustment is due to declining sales of the company’s premium vehicles.

The firm had previously revised its margin outlook downward in September, following a recall that impacted around 1.5 million vehicles and subsequently dented profits. The latest update was shared in a presentation ahead of the company’s annual results.

In addition to this, BMW has indicated that its financial services division faced extra provisions in the fourth quarter. These were specifically related to its finance operations in China and the consumer environment in the UK.

However, the company also confirmed that its free cash flow for 2024 surpassed €4 billion ($4.2 billion), which aligns with its previous forecast.

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