BMW fourth quarter off to good start, sees double-digit 2021 margins
BMW’s (BMWG.DE) October sales came in better than expected and November sales are off to a good start, the carmaker’s CFO said on Tuesday, adding he expected the company to reach the upper end of its 9.5% to 10.5% automotive profit forecast this year.
Such margins were unlikely to last, though easing supply chain bottlenecks for semiconductor chips in the second half of 2022 could still boost growth, Chief Financial Officer Nicolas Peter said at a roundtable with journalists in Frankfurt.
“I would be disappointed if we failed to reach the upper end of our current margin target,” Peter said.
The company expects electric vehicle sales to at least double in 2022 and plans increase the prices for all its new cars by an average of 1%, the CFO said.
He added BMW had already secured battery cell supply until 2025 and is negotiating with manufacturers about contracts for the second half of the decade.
He also said BMW’s planned increase of its stake in China joint venture BMW Brilliance to 75% from 50% should take place in the first quarter of 2022, when the country drops the rule blocking foreign ownership of more than 50% of local companies.
In early November, the German automaker reported a 42.4% increase in third-quarter net profits to 2.58 billion euros ($2.93 billion) as strong electric vehicle sales and higher prices offset lower deliveries amid chip supply issues.