Latest news with #BAMXF
Business Insider
3 days ago
- Automotive
- Business Insider
Here's Why Automakers Are Reviving Extended-Range EVs despite Initially Flopping
Major automakers are bringing back a type of hybrid vehicle that had mostly disappeared from the U.S. a few years ago. Known as extended-range electric vehicles (EREVs), these plug-in hybrids work mainly like electric vehicles (EVs) by using a battery-powered motor to drive. However, they also have a small gas engine that acts like a generator to recharge the battery when needed, which is different from regular hybrids, where the gas engine helps power the car directly. As a result, EREVs have bigger batteries and smaller gas engines that focus more on electric driving with gas as a backup. Confident Investing Starts Here: Interestingly, it is worth noting that earlier models, such as the Chevy Volt (GM) and BMW i3 (BAMXF), never sold well, and EREVs have mostly vanished after 2022. Nevertheless, Ram (STLA) is planning an EREV pickup truck in 2026 that can go up to 690 miles using both gas and electric power. Volkswagen (VWAGY), Jeep, and Nissan (NSANY) are also working on their own EREV models. These vehicles are useful for people who drive long distances or live in places without easy access to charging, which helps reduce range anxiety while keeping costs lower than full EVs. In fact, EREVs are cheaper to make than full EVs because they use smaller batteries and are less complex than regular plug-in hybrids. They also hold their value better than gas cars or full EVs, which lose most of their resale value within five years. In addition, sales of hybrids and plug-in hybrids are growing faster than fully electric cars, especially as more buyers focus on price and practicality. Therefore, EREVs may help more drivers transition to electric vehicles while avoiding issues like limited charging infrastructure or high upfront costs. Which Auto Stock Is the Better Buy? Turning to Wall Street, out of the stocks mentioned above, analysts think that STLA stock has the most room to run. In fact, STLA's average price target of $10.98 per share implies more than 8% upside potential. On the other hand, analysts expect the least from BAMXF stock, as its average price target of $92.82 equates to a gain of 5%.
Yahoo
15-03-2025
- Automotive
- Yahoo
Bayerische Motoren Werke AG (BAMXF) Q4 2024 Earnings Call Highlights: Navigating Challenges and ...
Group Revenue: EUR 142.4 billion, a moderate decrease compared to 2023. Group EBT: EUR 11 billion, significantly under 2023. Group EBT Margin: 7.7% for the year. Automotive EBIT: EUR 7.89 billion. Automotive EBIT Margin: 6.3%. Financial Services EBT: EUR 2.54 billion. Return on Equity (Financial Services): 15.1%. Vehicle Deliveries: 2.45 million BMW, MINI, and Rolls-Royce vehicles, a 4% decrease from the previous year. BEV Sales: Over 426,000 units, a 13.5% increase from 2023. Electrified Vehicles Sales: Nearly 25% of total sales. Automotive Revenue: Nearly EUR 125 billion, a 5.6% decrease from 2023. R&D Expenditure: EUR 9.1 billion, up from EUR 7.8 billion in 2023. CapEx: EUR 9.1 billion, increased from EUR 8.8 billion in 2023. Free Cash Flow: EUR 4.9 billion in 2024. Dividend Proposal: EUR 4.30 per share of common stock, EUR 4.32 per share of preferred stock. Dividend Payout Ratio: 36.7%. Warning! GuruFocus has detected 3 Warning Sign with BAMXF. Release Date: March 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bayerische Motoren Werke AG (BAMXF) anticipates a rise in sales figures for 2025, with a decrease in capital expenditure, leading to increased free cash flow. The company maintains a robust global footprint, providing resilience and flexibility to respond to external influences. Bayerische Motoren Werke AG (BAMXF) achieved significant growth in battery electric vehicle (BEV) sales, with a 13% increase year-on-year, and BEVs accounted for over 17% of total sales. The Neue Klasse project is set to be a groundbreaking initiative, with production starting soon, marking a significant technological advancement for the company. The company has a strong brand portfolio, including BMW, MINI, Rolls-Royce, and BMW Motorrad, each with a distinct identity and global popularity. The company faced challenges in the Chinese market, with weak market dynamics impacting sales performance. Intense price competition in China led to a decline in sales volume and affected the company's financial performance. The automotive segment's EBIT margin was impacted by pricing headwinds, particularly in China, and dealer compensation issues. Tariffs and trade tensions pose a risk to the company's operations, with potential impacts on profitability. The company experienced delivery stops related to the integrated braking system (IBS), affecting sales performance in the second half of 2024. Q: Can you provide insights on the potential impact of tariffs, especially between the EU and the US, and how they might affect BMW? A: Oliver Zipse, Chairman of the Management Board, emphasized the importance of free trade for global business models. He noted that tariffs harm everyone and expressed hope for their reduction. Walter Mertl, Member of the Board of Management, Finance, added that BMW has taken a conservative approach, creating provisions for tariffs, and is monitoring the situation closely. Q: What is the status of the IBS brake issue, and will it impact 2025 operations? A: Joachim Post, responsible for purchasing and supplier network, confirmed that BMW, in collaboration with suppliers, has implemented effective hardware and software measures to address the IBS brake issue. There are currently no delivery stops due to this issue, allowing normal sales and retail operations. Q: How is BMW addressing challenges in the Chinese market, and what are the expectations for growth there? A: Jochen Goller, responsible for customer, brands, and sales, acknowledged the challenging market environment in China, citing consumer confidence and structural issues. BMW is optimistic about stabilizing and growing its business in China through investments, dealership restructuring, and launching 10 new models, including the X3 long wheelbase. Q: What are BMW's plans regarding the USMCA compliance and potential tariff impacts from Mexico? A: Milan Nedeljkovi?, head of production, stated that BMW is exploring localization opportunities in North America, including battery cells and components, to meet USMCA requirements. The company is using its flexible production network to mitigate potential tariff impacts. Q: How does BMW plan to manage supply chain costs and potential supplier insolvencies? A: Joachim Post explained that BMW's local-for-local production approach helps mitigate supply chain costs. The company evaluates tariff impacts individually and leverages its global supplier network for flexibility and cost optimization. There are no current plans for workforce restructuring in China. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
