The Albany Gazette - BMW warns on tariffs, China as 2024 profits plunge

For 2024, the group's net profit fell 37 percent to 7.7 billion euros ($8.3 billion) while revenues were down over eight percent to 142.4 billion euros.

The Munich-headquartered group joins other German automakers in reporting sharply lower profits amid a choppy transition to electric vehicles and slowing demand in key market China.

BMW said it expected earnings before taxes in 2025 to be at the same subdued level as in 2024, while warning that much depended on rapidly changing trade policies.

"The continued challenging situation in China and tariff increases... are expected to provide headwinds," the carmaker said in a statement.

As part of his aggressive trade policy, US President Donald Trump has threatened to hit the European Union with 25-percent duties, which could hammer the region's automakers.

He also hit Canada and Mexico with tariffs before partially rolling them back, including a temporary exemption to most auto imports after an outcry from US carmakers.

US tariffs on Canada and Mexico could also hit European carmakers, as the region's auto supply chain is highly integrated.

BMW said its latest guidance takes into the account of tariff moves made so far and warned that further increases in duties "could have a negative impact".

Weakness in China, where European automakers have been struggling to compete with local rivals like BYD, was a major drag on BMW's 2024 earnings.

Vehicle deliveries in China were down 13.4 percent last year, while total deliveries of BMW group, which also includes Mini and Rolls-Royce, fell four percent.

(P.Clark--TAG)