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Hyperdrive

BMW Sees Tariffs, China Slump Weighing on Carmaking Profit

WATCH: BMW CEO Oliver Zipse speaks on Bloomberg Television.Source: Bloomberg

BMW AG’s carmaking profits will lag well below its long-term targets this year, weighed down by escalating trade tensions between the US and Europe and muted sales in China.

The German manufacturer expects an automaking margin of between 5% and 7% this year, after the measure fell to 6.3% in 2024, the lowest in four years. BMW’s long-standing aim is to keep its carmaking returns above 8%.