BMW Posts Staggering $73.7 Million Loss For Q1 - Remainder Of 2009 Remains Uncertain

frankly that's not that bad all things considered. According to the same article Mercedes posted a Q1 loss of $1.5 BILLION (1.2B Euros). BMW is probably dancing in the streets about $73 million.

the title is misleading... how is a 73 MILLION loss considered "staggering" when others are losing BILLIONS and struggling to survive???

this is a small loss and hardly worthy of a headline

The headline is a blatant attempt to fan the flames, because if BMW losing $73 million is "staggering" then I don't know how to adequately describe Daimler's $1.49 BILLION loss (billion, with a "b"). That's TWENTY TIMES as much. "Suicide causing"?

This was expected given the market turmoil that has swept the world by storm.

Now only Audi remains profitable with a healthy 363 million Euro first quarter profit.

BMW posted a 55 million ($73.7 million) loss for Q1

Mercedes-Benz posted a dismal 1.12 billion Euro loss for Q1.

BMW Financial Services has seen its number of contracts increase 11% but BMW's sales have fell 20%. Th eony way to reconcile the difference is by having BMW finance used cars.

Sure, BMW can control its used car prices better, but it exposes itself to a much larger risk profile in the process. BMW has used its Financial Services unit to continuously increase its sales through cheap lease deals and last year BMW took a MASSIVE 1.6 billion Euro hit to its earnings caused by falling prices of cars coming off of leases.

Tip for BMW: You can give out cheap leases right now, but continue to increase your risk and take huge hits to earningsin the process or you can offer cars for their regular rates and at least try to post a profit.

If BMW continues to lease cars at its current rate, it will fall to Audi very very soon.

It is clear Audi is in the driver's seat right now. With healthy profits, much smaller percentage declines both in the U.S. and globally, along with market leader status in China, the world's largest car market by sales, and Europe it will soon surpass Mercedes-Benz as the 2nd largest premium luxury car manufacturer.

If BMW continues to use its Financial Services arm to give out cheap lease deals in struggling economic times it too will fall as Audi will continue to expand in the leading auto market of the future.

^^ Agree. They need to stop proping up sales with these ridiculous residuals. It moves metal but they're loosing money. That's not a sustainable business plan. Lease the cars at a profit. Lease less but make money.

BMW isn't leasing anything right now, leases are waaaaaay down. The increase in FS business is due to Certified PreOwned sales and new car buyers buying cars with low APRs, not leasing them.

BMW needs to do away of that newer temperamental drive-by-wire system that BMW keep telling us the jerky automatic gear shifting is designed to be that way. That's what driving down the residual value.

Whatthe the only thing that is sad is the amount of time you will be spending on this website if your ego fails to stay in check.

Do understand that a certain Agent on here is carefully monitoring your posts to make sure you don't try to hurt Audi's reputation by posting false information and lies.

Be careful what you write, because one slip of the keyboard might cause you to be banned yet again.

I know doesn't it hurt to see BMW sales tanking along with profits dropping to negative while Audi sales drop by a much smaller percentage while the company stays at a healthy profit level......

if 73 million is staggering then what do you call it when you lose 6billion in just the first quarter 09? Cough GM Cough

I just posted the comment below in another Lexus vs. anything German standard "autospies" article, and I just thought it might be of interest here as well:

"Lexus selling well in Europe? That is as likely as a vegetarian eating meat.

It just won´t happen that a rebadged Toyota is a success over there - check the actual sales Numbers for Lexus in Europe, if you are interested:

Year 2008, Lexus cars sold in Europe: 45.240 (-16% to 2007)
Source: http://www.blogspan.net/presse/toyota-verkaufszahlen-2008-in-deutschland-und-europa/mitteilung/22575/

Any German Premium Brand sold more cars in Germany solely, than Lexus was able to "Sell" in whole Europe:

Year 2008, sold in Germany:
Lexus: 3.745
Audi: 251.393
BMW (without MINI): 253.967
Mercedes: 327.965
Source: http://www.kfz-betrieb.vogel.de/fileserver/vogelonline/issues/kfz/sonst/2008/1912.pdf

These guys know what is good, and as a matter of fact they have enough own premium labels, which deliver them quality products since years.

Answer to the question: Ridiculous attempt. Period."



Don´t worry guys, BMW will be around long enough to kick ass!

BMW is a privately held company. Period. Nobody (who isnt explicity invited ) has a whiff of their financials or what their cash flow is.
Whether they say profit or loss means nothing.

MB/GM/Toyota/VW are publicly held companies that have to work with vastly different accounting standards and tax laws. Their balance sheet and cash flows can be analysed to see what situation they are in.