BMW predicts more increased limits and deliveries between the electric rollout

March 16, 2023: On Wednesday, German automaker BMW set out targets to barely increase margins for its automotive area and increase deliveries this year as it is pushing ahead with the rollout of its electric fleet.

The firm expects an EBIT margin of 8-10% for its automotive range in 2023, with deliveries set to increase slightly from 2022 and “selling prices staying at a stable level.” It forecasts the used car business will normalize this year “because of the increased availability of new cars.”

Shares of BMW increase by 1.07% at 8:20 a.m. London time, after the announcement.

“A high level of flexibility, as combined with our operational performance, confirmed to be an effective combination for making sure that the success of the BMW Group, even in the encounter of headwinds and have the advantage of opportunities for profitable surge,” Oliver Zipse, chairman of the board of management of BMW AG, stated in a press statement.

Such as rivals, BMW has been contending with global semiconductor shortages and supply chain disruptions, which challenge it to fulfil its book order.

The firm confirmed the full-year 2022 results reported last week, which include an EBIT of 10.6 billion euros for its automotive segment, which had an 8.6% margin last year. The company posted its automotive cash flow near 11.1 billion euros.

As a result, it proposes a dividend of 8.50 euros per common stake share, in comparison with a 5.80 euro payout for a similar stock in the last year.

“We don’t look at every drive trend or one segment or one area in the world, and I think this plays very nicely in what we stated a couple of years before,” Zipse said. “And now we’re executing this plan. And it looks such as the plan we are executing here is successful on the revenue and market share sides.”

He stressed that the BMW strategy would continue to prioritize profitability, downplaying the effect of zooming inflation rates on consumer demand,

“Whether inflation has an input is a matter of whether you can have pricing power in the market,” he stated. “With that international approach we have here, I would be cautiously optimistic regarding the year, and we will have an increase in volume overall.”

The company stated that the appointment of a recent chief financial officer on March 9, Walter Mertl, assumed the role in May after the retirement of Nicolas Peter at the time.

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts

GAINS | Empowering Companies to Make the Right Decision | Bill Benton

Ensuring the right products are in the right place and at the right time is critical for companies also dealing with supply chain constraints and a high degree of variability. Uncertainty has become the name of the game and the only way to effectively optimize inventory through continuous, data-driven assessments, planning, and decision-making.

Extensiv | Creating the Future of Omnichannel Fulfillment | Sheridan Richey

Food Huggers, a consumer brand that designs products to reduce waste at home, may be in an enviable position now but before they found Extensiv Order Manager, managing booming orders and staying on top of inventory was a huge operational challenge. The business has inventory spread across multiple geographically distributed warehouses, with orders received via multiple sales channels, including Shopify storefronts and Amazon.

Chainguard | Making Supply Chain Secure | Dan Lorenc

By late 202, the alarm bells were just starting to ring. Researchers discovered that Russian spies had months earlier burrowed deep into the networks of several U.S. federal networks. The spies, working for Russia’s foreign intelligence service, had first targeted SolarWinds, an IT company whose software helps to remotely manage the networks of thousands of businesses, Fortune 500 organizations and federal government agencies.

BMW predicts more increased limits and deliveries between the electric rollout