Latest news with #WalterMertl
Yahoo
09-05-2025
- Automotive
- Yahoo
BMW anticipates US car tariffs reduction from July
BMW anticipates a reduction in US car tariffs starting July, based on discussions with US officials, offering an optimistic view amid the trade war. The German luxury carmaker has reaffirmed its 2025 forecast, despite warnings of a "notable" impact on second-quarter earnings from tariffs imposed by US President Donald Trump. Engaged in multi-level discussions with US policymakers, BMW has found its arguments for tariff relaxation are being considered, reported Reuters. BMW Group finance chief Walter Mertl was quoted by the news agency as saying: "We are noticing that things are moving, developing and being negotiated everywhere. Accordingly, our reading, based on all the networks that we have at our disposal, is that we assume that something will change in July." BMW CEO Oliver Zipse highlighted the economic contribution of the Spartanburg plant in South Carolina, which supports approximately 43,000 jobs and contributes over $26bn annually. "We can already see that this will not be ignored, our large footprint," Zipse commented, without providing further details. In contrast to competitors like Mercedes-Benz, Ford, and Stellantis, which have withdrawn their 2025 forecasts due to US trade policy uncertainty, BMW stands by its March projections. The company anticipates earnings before tax for 2025 to match 2024 levels, with an automotive business operating margin between 5-7%. BMW expects some tariff increases to be temporary, with reductions foreseen from July 2025. BMW shares saw a 1.3% rise after the firm reported first-quarter earnings before interest and tax of €2.02bn ($2.3bn) at its auto unit, surpassing the LSEG poll's average forecast of €1.85bn. The automotive unit's operating margin reached 6.9%, down from the previous year's 8.8% but still above the 6.3% poll prediction, supported by strong orders and cost discipline. AJ Bell investment director Russ Mould was quoted the news agency as saying: "In an environment where its peers have been withdrawing guidance left, right and centre, BMW's decision to stick with guidance was well-received by the market. "Part of this is predicated on some tariffs going into reverse from July onwards – so investors will be able to judge from the summer whether or not the current forecasts remain credible." Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData's Strategic Intelligence . "BMW anticipates US car tariffs reduction from July" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
07-05-2025
- Automotive
- The Independent
BMW chief expects lower tariffs as trade war expected to hit profits
BMW has predicted a decline in US car tariffs starting in July, citing communications with US officials. This optimistic outlook contrasts with many of its competitors and reinforces the German automaker's confidence in its 2025 projections. Despite this positive forecast, BMW acknowledges that existing tariffs imposed by the Trump administration will significantly impact its second-quarter results. However, executives declined to quantify the expected financial hit during an analyst call. BMW, which operates its largest plant in the United States and holds the title of the country's leading auto exporter by value, emphasised its ongoing discussions with US policymakers. The company believes its arguments for tariff relief are gaining traction. "We are noticing that things are moving, developing and being negotiated everywhere," stated BMW finance chief Walter Mertl. He added, "Accordingly, our reading, based on all the networks that we have at our disposal, is that we assume that something will change in July." CEO Oliver Zipse said BMW's operations in South Carolina, home to its Spartanburg plant, supported around 43,000 direct and indirect jobs and made an economic contribution of more than $26 billion a year. "Knowing that we are the largest exporter, we are convinced that this will play a role in some appropriate form in the negotiations in the coming weeks," Zipse said. "We can already see that this will not be ignored, our large footprint," he said, declining to elaborate. Zipse said BMW was deeply rooted in the US market and was talking to all stakeholders to make its point. Many of BMW's rivals, including Mercedes-Benz Ford F.N and Stellantis have pulled their 2025 forecasts, blaming the uncertainty caused by US trade policy. BMW said its 2025 outlook, which was provided in March and factored in all tariffs announced up to that point, still stood. It has forecast earnings before tax on a par with 2024 and an operating margin at its automotive business of 5-7 per cent. The company said that while it could only estimate the potential impact of tariffs, it expected "some of the tariff increases to be temporary, with reductions from July 2025". BMW shares were 1.3 per cent higher at 1011 GMT, after the company reported first-quarter earnings before interest and tax of 2.02 billion euros ($2.3 billion) at its auto unit, beating analysts' average forecast of 1.85 billion euros in an LSEG poll. Helped by strong orders and cost discipline, the unit's operating margin reached 6.9 per cent, down from the 8.8 per cent in the same period of last year, but beating the 6.3% forecast in the poll. "In an environment where its peers have been withdrawing guidance left, right and centre, BMW's decision to stick with guidance was well-received by the market," Russ Mould, investment director at AJ Bell, said in a note. "Part of this is predicated on some tariffs going into reverse from July onwards – so investors will be able to judge from the summer whether or not the current forecasts remain credible." BMW included the caveat that its business performance in 2025 may deviate if tariffs increase or remain in place for longer than anticipated, and flagged the risk of potential supply bottlenecks for specific parts or raw materials.
RTÉ News
07-05-2025
- Automotive
- RTÉ News
BMW keeps 2025 outlook, but warns US tariffs will bite this quarter
German premium carmaker BMW has today confirmed its 2025 outlook and said it expected some of US tariffs on car imports to decline from July, but warned the duties will have a "notable" second-quarter impact on its business. "The geopolitical and macroeconomic uncertainty has reached a level we have rarely seen before," BMW's Chief Financial Officer Walter Mertl told journalists during a first-quarter earnings call, adding that the carmaker was "closely monitoring" the impact on consumer sentiment. Most of BMW's rivals, including Mercedes-Benz, Ford and Stellantis, have all pulled their 2025 forecasts, saying it was too difficult to come up with proper guidance in light of far-reaching import tariffs in the US, the world's second-biggest auto market. But BMW said its 2025 outlook provided in March that had factored in all tariffs announced up to that point, still stood. The carmaker has forecast earnings before tax on par with 2024 and an operating margin at its automotive segment of 5-7%. BMW said while it could only estimate the potential impact of tariffs in the current year based on certain assumptions, it expected "some of the tariff increases to be temporary, with reductions from July 2025". BMW shares were 2.1% higher at the top of Germany's blue-chip index .GDAXI at 0702 GMT, as the company reported better-than-expected first-quarter EBIT of €2.02 billion at its auto unit, which came in above the €1.85 billion LSEG poll of banks and brokerages. Citing strong orders and cost discipline, the unit's operating margin reached 6.9%, down from the 8.8% in the same period of last year, but beating the 6.3% LSEG poll forecast. "The current pressure on the automotive industry is well known and has left its mark on some industry giants," said Helge Rechberger of Raiffeisen Research. "It is therefore all the more remarkable that BMW is able to meet its targets for the time being." BMW still included the caveat that its actual business performance may deviate if tariffs increase or remain in place for longer than anticipated, also flagging the risk of potential supply bottlenecks for specific parts or raw materials.
Business Recorder
07-05-2025
- Automotive
- Business Recorder
BMW keeps 2025 outlook, but warns US tariffs will bite this quarter
FRANKFURT/LONDON: German premium carmaker BMW on Wednesday confirmed its 2025 outlook and said it expected some of US tariffs on car imports to decline from July, but warned the duties will have a 'notable' second-quarter impact on its business. 'The geopolitical and macroeconomic uncertainty has reached a level we have rarely seen before,' BMW's Chief Financial Officer Walter Mertl told journalists during a first-quarter earnings call, adding that the carmaker was 'closely monitoring' the impact on consumer sentiment. Most of BMW's rivals, including Mercedes-Benz, Ford and Stellantis, have all pulled their 2025 forecasts, saying it was too difficult to come up with proper guidance in light of far-reaching import tariffs in the United States, the world's second-biggest auto market. But BMW said its 2025 outlook provided in March that had factored in all tariffs announced up to that point, still stood. The carmaker has forecast earnings before tax on par with 2024 and an operating margin at its automotive segment of 5-7%. BMW said while it could only estimate the potential impact of tariffs in the current year based on certain assumptions, it expected 'some of the tariff increases to be temporary, with reductions from July 2025'. BMW foresees earnings hit as Europe counts the early cost of tariffs BMW shares were 2.1% higher at the top of Germany's blue-chip index at 0702 GMT, as the company reported better-than-expected first-quarter EBIT of 2.02 billion euros ($2.3 billion) at its auto unit, which came in above the 1.85 billion LSEG poll of banks and brokerages. Citing strong orders and cost discipline, the unit's operating margin reached 6.9%, down from the 8.8% in the same period of last year, but beating the 6.3% LSEG poll forecast. 'The current pressure on the automotive industry is well known and has left its mark on some industry giants,' said Helge Rechberger of Raiffeisen Research. 'It is therefore all the more remarkable that BMW is able to meet its targets for the time being.' BMW still included the caveat that its actual business performance may deviate if tariffs increase or remain in place for longer than anticipated, also flagging the risk of potential supply bottlenecks for specific parts or raw materials.
Business Times
07-05-2025
- Automotive
- Business Times
BMW sticks to 2025 outlook, but warns US tariffs will bite this quarter
[FRANKFURT] German premium carmaker BMW on Wednesday (May 7) confirmed its 2025 outlook and said it expected some of US tariffs on car imports to decline from July, but warned the duties will have a 'notable' second-quarter impact on its business. 'The geopolitical and macroeconomic uncertainty has reached a level we have rarely seen before,' BMW's chief financial officer Walter Mertl told journalists during a first-quarter earnings call, adding that the carmaker was 'closely monitoring' the impact on consumer sentiment. Most of BMW's rivals, including Mercedes-Benz, Ford and Stellantis, have all pulled their 2025 forecasts, saying it was too difficult to come up with proper guidance in light of far-reaching import tariffs in the United States, the world's second-biggest auto market. But BMW said its 2025 outlook provided in March that had factored in all tariffs announced up to that point, still stood. The carmaker has forecast earnings before tax on par with 2024 and an operating margin at its automotive segment of 5-7 per cent. BMW said while it could only estimate the potential impact of tariffs in the current year based on certain assumptions, it expected 'some of the tariff increases to be temporary, with reductions from July 2025'. Shares in the company were indicated to open 2 per cent higher, also supported by better-than-expected first-quarter EBIT of 2.02 billion euros (S$2.96 billion) at its auto unit, which came in above the 1.85 billion LSEG poll of banks and brokerages. Citing strong orders and cost discipline, the unit's operating margin reached 6.9 per cent, down from the 8.8 per cent in the same period of last year, but beating the 6.3 per cent LSEG poll forecast. BMW still included the caveat that its actual business performance may deviate if tariffs increase or remain in place for longer than anticipated, also flagging the risk of potential supply bottlenecks for specific parts or raw materials. REUTERS
