BMW Issues Significant Profit Warning - Steps Up Cost Cutting

BMW warned that its 2019 earnings will fall "well below" last year's level and announced a 12 billion euro ($13.6 billion) cost savings plan to help offset the impact of trade conflicts and unprecedented spending on electric cars.

Pretax profit is expected to decline by more than 10 percent this year, the automaker said on Wednesday.

BMW is responding by stepping up a savings program with plans to cull models, reduce development times by as much as one-third and hold the workforce steady this year.

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SanJoseDriver - 3/20/2019 11:44:08 AM

-2 Boost

"unprecedented spending on electric cars." .... hmmmmm

PUGPROUD - 3/20/2019 12:09:35 PM

+3 Boost

Read the other day that BMW has 1,300 engineers solely dedicated to developing autonomously driven cars. I have multiple reactions...1) My god what is that costing them? 2) Is it really so smart to devote that many people and cost to something so far out and likely to be available for purchase in the open technology market one day? 3) If you had devoted that cost to styling and performance you might once again be "The Ultimate Driving Machine" and be making cars people lust after.

Vette71 - 3/20/2019 12:34:42 PM

+3 Boost

One has to wonder what the Boeing 737 Max issue will do to autonomous cars. Airbus had a similar problem with the A330 10 years ago that fortunately occurred at high altitude giving the pilots time to recover. Pilot described it as "the plane had a mind of its own". True autonomy in vehicles isn't something the population is ready for.

skytop - 3/20/2019 6:41:02 PM

+1 Boost

BMW has pencil necks auditor engineers working everyday to cheapen up and economize on the BMW products. Pretty soon, BMW will akin with Hyundai.

jeffgall - 3/20/2019 8:36:48 PM

+1 Boost

Can they make their interiors cheaper?

MDarringer - 3/20/2019 9:50:21 PM

+1 Boost

You'll have to ask Cadillac that question.

dlin - 3/20/2019 10:58:10 PM

+1 Boost

Time to merge with... Toyota?

mpls - 3/21/2019 7:41:43 AM

+1 Boost

cost cutting ? remove all lights, indicators etc..