European car stocks tumble after BMW warning

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European car stocks tumble after BMW warning

The German automaker reduced its financial outlook for the fiscal year 2024, citing weaker sales, particularly in China, and supplier issues.

These changes reflect the automaker's expectations of a significant decrease in Group Profit Before Tax , a stark contrast to the slight decrease previously anticipated. Similarly, the Motorcycle division's ROCE has been adjusted to 14%-16% from the earlier projection of 21%-26%. The EBIT margin mid-point for this division has also been decreased to 6.5% from the initial forecast of 9.0%. This downgrade is attributed to increased competition in key markets such as China and the USA.

 

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