German auto group BMW expects its pre-tax profit to drop significantly this year as global sales are hit by the corona virus outbreak. The Munich company announced this on Wednesday.
According to BMW, the virus will cause declining sales in all major markets this year and deliveries to customers will be considerably weaker than last year. In 2019, there was still a record of more than 2.5 million cars, including the subsidiary brands Mini and Rolls-Royce. Due to the impact of the virus, BMW is reducing production and shortening working hours for personnel is introduced. We also work from home as much as possible.
“We fully support measures to curb the virus outbreak,” said BMW CEO Oliver Zipse.
The Bavarian car manufacturer’s turnover last year exceeded 100 billion euros for the first time. Profit before tax fell by 26 percent to EUR 7.1 billion. This was partly due to high costs for technology around electric cars.