BMW today reported that its net profits are down 76% from a year ago. The BBC has more:
Carmaker BMW has said it sees few signs of a lasting economic recovery after it reported profits down by three-quarters for the April to June period. Net profit was 121m euros ($174m; £103m), down 76% from a year ago, with car sales down by nearly a fifth.
Despite “some tentative positive signs, a lasting and wide ranging recovery is not yet in sight”, BMW said. BMW has been cutting costs as sales fall. Last week, it announced it would quit racing in Formula 1 from the end of this season.
Earlier on Tuesday, the world’s biggest carmaker, Toyota, reported a big quarterly loss after sales slumped.
Last week, VW reported an 81% net profit loss from a year ago. Renault, Peugeot Citroen, Daimler and Nissan also reported losses.
Yet some carmakers are suffering more than others. In the US, Subaru’s sales have jumped 34%, Hyundai’s are up 12%, and Ford sales have increased 2.3% from last year. Cash for Clunkers is largely responsible: Up to 50% of Subaru’s July sales were part of Cash for Clunkers, reports Edmunds. Most people bought Subaru Foresters in exchange for their clunkers.