BMW to cut antitrust provisions by 1 billion Euro over EU penalties

BMW said on Thursday it would have to set aside 1 billion euros ($1.2 billion) less than initially thought for expected European antitrust fines for alleged collusion with competitors.

In 2019, the automaker recognized a provision of around 1.4 billion euros for expected fines from an EU investigation into collaboration between German automakers on emission-reduction technologies.

“The major limitation in the scope of the allegations has led to a revaluation of the provision,” BMW said, adding this would lead to a positive effect on revenues of around 1 billion euros in the second quarter.

The 2021 operating profit margin over sales for the automotive sector would be one percentage point higher, as a result, it added.