Last year, net profits for BMW went down almost 90 percent but company heads claimed that the carmaker is in good health financially speaking. As it turned out the 89.5 percent drop in BMW’s profits, which was equivalent to 2.4 Billion Euros (2.24 Billion Pounds), is attributed to exceptional costs connected to bad debts, personal costs and provisions to cover risks on used car outlets.
The official statement from BMW is that the company earned 330 million Euros (303 Pounds) in profits last year. The bad news from BMW is just the latest from a string of bad news including Saab’s previous announcement that it was cutting around 750 jobs and Volkswagen’s prediction of a large drop in profits for this year. BMW is said to have been making improvements at the level of operation in spite of the global downturn. Through efforts within the BMW management they stand today in a financial position they assure is ‘solid.’
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