BMW expects headwinds from increasing currency and commodities costs to reach a mid to high triple-digit million euro amount in next year, Chief Financial Officer Nicolas Peter stated on Monday.
BMW still intends to reach an operating margin in the automotive segment of between 8 percent and 10 percent, Peter informed analysts at a presentation in Munich on Monday.
“Whether we achieve this in next year will depend on many different factors,” Peter stated in email to Reuters.
Tariffs, raw materials costs and the cost of putting expensive technologies in vehicles to decrease emissions will be a burden on revenues, BMW stated.
Global tariffs between China and the United States will probably result in a charge in the mid three-digit million euro range in 2019, Peter stated.
BMW further stated goodwill and warranty issues will impact revenues in the fourth quarter.