Tag Archives: financial

Volkswagen

Brand Group Core will increase working revenue in Q1 2024 regardless of difficult market surroundings

Leave a comment

The Brand Group Core delivered sturdy monetary ends in the primary quarter of 2024. With steady car gross sales and barely decrease gross sales income, the Brand Group Core reported a big year-on-year enhance in working revenue and working return. At 6.4%, working return was nicely throughout the goal hall of 6-7% for 2024. All manufacturers contributed to this achievement, reporting greater returns on the idea of centered price administration in addition to elevated implementation of synergy and effectivity measures throughout the Brand Group. The monetary efficiency within the first quarter felt the influence of offsetting results – these included, for instance, the abrupt termination of presidency incentives for electrical vehicles within the German market and the associated low cost measures firstly of the 12 months. Furthermore, there was excessive depreciation attributable to investments in product campaigns and the associated ramp-up of electrical merchandise.
The Brand Group Core was, nonetheless, capable of counteract these results within the first quarter of 2024 with a balanced product combine. The slight dip in demand for all-electric autos (BEV) was offset by greater deliveries of ICE fashions. Overall, steady Q1 unit gross sales figures at Brand Group stage mirror these results.

Brand Group Core increases operating profit in Q1 2024 despite challenging market environment

Significant enhance in Brand Group revenue and return on the again of strong car gross sales and gross sales income.

Key monetary efficiency indicators affirm the energy and resilience developed by the Brand Group Core: with unit gross sales of 1,191,926, the Brand Group’s car gross sales virtually matched the excessive prior-year stage (Q1 2023: 1,192,974 autos). Even although gross sales income got here in at 32.8 billion euros – thus barely decrease than the very robust gross sales stage of the earlier 12 months (Q1 2023: 33.2 billion euros) – working revenue earlier than particular objects grew 21% to 2.1 billion euros (Q1 2023: 1.7 billion euros).

The working return (earlier than particular objects) improved by 1.2 proportion factors to six.4%. Cash outflows within the first quarter had been primarily attributable to preparations for brand new mannequin ramp-ups.

The Brand Group Core delivered 1,543,500 autos to prospects within the first quarter of the 12 months, 6.2% greater than the identical prior-year quarter (Q1 2023: 1,453,500 autos). All-electric fashions accounted for an necessary share of deliveries: essentially the most profitable all-electric fashions from the Group delivered worldwide within the first quarter of 2024 had been the ID.4, ID.3, Škoda Enyaq and ID. Buzz. Škoda delivered 12.3% extra all-electric autos in Q1 2024 in contrast with the identical prior-year quarter. At Volkswagen Commercial Vehicles, the rise was as excessive as 29.4%.

Key figures for the Brand Group Core:

Key financials

Q1 2024

Q1 2023

Change 24/23

Unit gross sales (in 1000’s)
(incl. different autos from different manufacturers)

1,192

1,193

0%

Sales income

32.77 billion euros

33.16 billion euros

-1%

Operating revenue earlier than particular objects

2.11 billion euros

1.74 billion euros

+21%

Operating return earlier than particular objects

6.43%

5.25%

+1.2%-points

The Volkswagen Passenger Cars, Škoda, SEAT/CUPRA and Volkswagen Commercial Vehicles manufacturers every contributed to the sturdy Brand Group Core Q1 outcomes for fiscal 2024.

Unit gross sales on the Volkswagen Passenger Cars model within the first quarter of fiscal 2024 ran at 694,617, 5% down on car gross sales for a similar prior-year quarter (Q1 2023: 730,797 autos). Given the commonly difficult market surroundings, a really robust efficiency within the first quarter of the earlier 12 months and mannequin adjustments in key quantity drivers (Golf, Tiguan, Passat), gross sales income firstly of the 12 months got here in at 19.3 billion euros, 6% decrease than the prior-year determine (Q1 2023: 20.5 billion euros). At the identical time, nonetheless, the working revenue earlier than particular objects improved by 26.8% to 770 million euros, confirming the Volkswagen model’s steady place total in a risky market. At 4.0%, the working return (earlier than particular objects) was noticeably greater than the prior-year determine of three.0%, pushed by a constructive regional combine and worth results that in flip had been counteracted by pay will increase.

Patrick A. Mayer, Member of the Board of Management of the Volkswagen Brand answerable for “Finance”, commented: “The solid results for the first quarter of 2024 show that our cost optimization measures are having an effect and the brand is successfully strengthening its resilience. Implementation of the Volkswagen brand’s comprehensive performance program continues to gather momentum and will make us even more effective and faster in this challenging year of 2024.”

Škoda Auto delivered 220,500 autos worldwide within the first quarter of 2024, a rise of 5.2% in contrast with the earlier 12 months. The order consumption stays promising. Sales income got here in at 6.6 billion euros, barely down on the determine for Q1 2023 (6.8 billion euros). This is partly attributable to greater materials prices. The working revenue earlier than particular objects ran at 535 million euros and the working return (earlier than particular objects) was 8.1%, barely above the extent for a similar prior-year quarter
(Q1 2023: 8.0%). With deliveries operating at 61,200 (+36%), the Octavia remained the model’s best-selling mannequin.

SEAT/CUPRA reported a constructive begin to enterprise 2024. First-quarter car gross sales by the model ran at 164,300 models, a rise of 6.2% in contrast with the primary quarter of the earlier 12 months. SEAT/CUPRA generated gross sales income of three.8 billion euros, a rise of 6.8% on the determine for Q1 2023. The working revenue earlier than particular objects developed significantly nicely, rising 57% to 226 million euros. The working return (earlier than particular objects) improved to five.9%, similar to an increase of 1.9 proportion factors on the determine for Q1 2023. These constructive figures mirror the profitable market penetration of SEAT/CUPRA and the rising recognition of SEAT/CUPRA fashions.

Business improvement on the Volkswagen Commercial Vehicles model within the first quarter of 2024 was constructive. Vehicle gross sales of 121,906 models represented 17% progress in contrast with similar quarter in 2023. There was corresponding 16% progress in gross sales income to 4.2 billion euros. Particularly noteworthy is the rise in working revenue earlier than particular objects, which greater than doubled to 400 million euros (+ 134%). The working return (earlier than particular objects) got here in at 9.6%, a rise of 4.8 proportion factors.

Outlook
 The subdued financial prospects, rising competitors and political challenges will proceed to form the present fiscal 12 months. Against this backdrop the Brand Group Core because the “core of the Volkswagen Group” has outlined its key priorities: to spice up its monetary energy and innovativeness in addition to enhance its resilience. 2024 can be a 12 months of complete mannequin change. The Volkswagen model started the present 12 months with the market launch of the three most necessary quantity fashions: Tiguan, Golf und Passat. The Brand Group Core will additional strengthen its market place by debuting additional enticing new fashions such because the all-electric Volkswagen ID.7 Tourer, the long-wheelbase ID. Buzz and the CUPRA Tavascan. The Brand Group Core’s working return in Q1/24 was throughout the full-year goal hall of 6-7%. With a transparent give attention to additional decreasing complexity, shortening improvement cycles and systematically tapping into synergy potentials, the Brand Group Core is on monitor to satisfy its goal of an working return of 8% by 2026.

News

Fisker Ocean manufacturing stops for six weeks as funding talks proceed

Fisker is pausing manufacturing of the Ocean SUV for six weeks because it appears to safe essential monetary backing, amid doubts over its potential to proceed working.

The transfer comes because the EV agency publicizes some $150 million in funding from an current investor, who stays anonymous.

The cash shall be offered within the type of convertible notes, that are topic to curiosity upon reimbursement, and is “subject to certain conditions”, together with Fisker submitting an in depth monetary report (recognized within the US as Form 10-Ok) for the 2023 monetary 12 months. 

The funding shall be allotted in 4 tranches. 

Fisker mentioned it stays in talks with a “large auto maker” over a monetary deal, which might take the type of pure funding or a strategic improvement or manufacturing partnership.

It has nonetheless not named this producer, however Nissan is broadly reported to be in talks relating to a possible $400m funding into Fisker.

It’s understood that as a part of this deal, Nissan would have entry to the platform that underpins the Fisker Alaska and would construct the compact pick-up truck alongside its personal associated mannequin in North America. 

While these talks proceed, manufacturing of the Ocean at Magna Steyr’s manufacturing facility in Graz, Austria, shall be placed on maintain for six weeks to permit Fisker to “align inventory levels and progress strategic and financing initiatives”. 

Fisker mentioned round 1000 Oceans have been produced between 1 January and 15 March and it delivered round 1300 models. There are allegedly some 4700 in its stock, claimed to price greater than $200m. 

Fisker lately paused improvement of its inexpensive compact EV, the Pear hatchback, having made a loss of $463.6m throughout the fourth quarter of 2023.

The firm is presently focusing its remaining money reserves on ramping up manufacturing of the Ocean, in addition to rolling out additional software program updates for the automotive.

It produced 10,193 Oceans and delivered 4929 throughout 12 nations in 2023 and expects to ship between 20,000 and 22,000 in 2024. It offered 144 within the UK in January.

Fisker Alaska front cornering

BMW

BMW Group continues on worthwhile progress course

Munich. The BMW Group achieved its enterprise targets for monetary yr 2023, as forecasted. Despite sturdy competitors and risky situations, the corporate efficiently maintained its worthwhile progress and defended its main place within the international premium phase: A complete of 2,554,183 premium autos weredelivered to clients within the yr to the tip of December (2022: 2,399,632 models / +6.4%) ‒ together with 717,620 models within the fourth quarter (This fall 2022: 651,794 models / +10.1%). Deliveries for the complete yr had a strong improve, leading to a market share of three.3%.

High demand for its merchandise was the motive force for the BMW Group’s persevering with sturdy monetary efficiency: The Group EBT margin got here in at 11.0% (2022: 16.5%; This fall: 8.6%; 2022: 8.2%), above the strategic goal of 10%. The EBIT margin within the Automotive Segment of 9.8% (2022: 8.6%; This fall: 8.5%; This fall 2022: 8.5%) was inside the forecast goal vary of 9.0-10.5%. 

Throughout 2023, the corporate’s recent and enticing vary of fully-electric autos was a key progress driver. The BMW Group delivered a complete of 375,716 fully-electric automobiles (2022: 215.752 models / +74,1%) to clients, attaining a share of round 15% of whole gross sales, as deliberate. Including the PHEVs delivered, the BMW Group bought a complete of 565,875 electrified autos (2022:433,792 models / +30.5%) and thus achieved a gross sales share of twenty-two%.

The electrification of the automobile portfolio contributes considerably to CO2 emissions discount within the Group and likewise to the continued discount of CO2 fleet emissions. In the European fleet, the BMW Group continued to cut back emissions in 2023: At 102.1 grams per kilometre of CO 2 (in response to WLTP; 2022: 105 g/km / -2.8%), the preliminary determine was considerably beneath the goal set by the European Union of 128.5 grams per kilometre.

“The year 2023 underlined how we are implementing our strategy consistently and successfully. We posted strong growth and substantially increased our percentage of fully-electric vehicles, while improving our operational profitability. A lot of people talk about ‘transformation’. For us, it’s more a question of continuous progress,” mentioned Oliver Zipse, Chairman of the Board of Management of BMW AG, on Thursday. “We are advancing forward with our course – offering our customers the newest innovations and the latest technology, regardless of the vehicle’s powertrain. In this way, we aim to continue to deliver strong products for strong demand.”

Solid improve in Group revenues
Group revenues reported a strong improve within the full yr and climbed to € 155,498 million (2022: € 142,610 million / +9.0% / adjusted for foreign money translation results: +13.1%). 

In the interval from January to December 2023, the revenues of BMW Brilliance Automotive Ltd. (BBA) have been absolutely included; within the prior yr, this was solely the case from 11 February 2022 onwards, following full consolidation. This must be factored into the year-on-year comparability.

In addition to full consolidation, revenues have been primarily pushed by greater gross sales volumes and constructive product combine results. Higher rates of interest and tailwinds from mortgage financing additionally contributed to the expansion in revenues – which have been impacted by foreign money headwinds from the Chinese renminbi and the US greenback. 

R&D bills attain new excessive

Group analysis and growth prices for the complete yr rose considerably to € 7,538 million (2022: € 6,624 million / +13.8%). In addition to growth bills for brand new fashions, like the brand new BMW 5 Series, the X3 and X5 (mannequin replace), Rolls-Royce Spectre* and future fashions for the NEUE KLASSE, R&D spending was primarily targeted on additional electrification and digitalisation of the automobile portfolio and on automated driving.

The R&D ratio (in response to the German Commercial Code) for the complete yr was 5.0% (2022: 5.0%) and due to this fact on the excessive finish of the corporate’s long-term goal vary of 4.0-5.0%.

The BMW Group’s capital expenditure elevated within the full yr to € 8,836 million (2022: € 7,791 million / +8.5%). Substantial funding was channelled into the electrification and autonomous driving modules, in addition to organising high-voltage battery manufacturing in numerous markets and plant development in Debrecen, Hungary.

The capex ratio for the 12-month interval got here in at 5.7% (2022: 5.5%).

“We are making major investments in innovative technologies and electrification and digitalisation of our products and plants. We are investing in the future of the BMW Group and generate a strong free cashflow. Our strong financial performance paves the way for this. Our profitability today lays the foundation for our success in the future. Thanks to our highly efficient premium vehicles with leading technology, we aim to maintain our profitable growth in the future,” mentioned Walter Mertl, member of the Board of Management chargeable for Finance.

Group earnings (EBIT) considerably greater

The firm’s full-year earnings earlier than monetary end result (EBIT) mirrored the BMW Group’s sturdy working efficiency: In 2023, EBIT climbed to € 18,482 million(2022: € 13,999 million / +32.0%). In addition to the complete consolidation of BBA and better automobile deliveries, decrease intersegment eliminations associated to the leasing enterprise additionally had a constructive impact.

Between January and December, the BMW Group reported pre-tax earnings (EBT) of € 17,096 million (2022: € 23,509 million / -27.3%). Here, the destructive honest worth pushed monetary end result of € -1,386 million (2022: € 9,510 million) displays a corresponding base impact: In the prior yr, the revaluation of BBA fairness pursuits of € 7.7 billion, as a part of the complete consolidation, had considerably elevated the BMW Group’s monetary end result, Group earnings and Group web revenue.

The EBT margin for January to December got here in at 11.0% (2022: 16.5%).

Group web revenue for the 12-month interval amounted to € 12,165 million (2022: € 18,582 million / -34.5%). Without the one-time revaluation impact, Group web revenue would have been greater year-on-year, with an EBT margin on par with the earlier yr.

Significant improve in Automotive EBIT in YTD December

In the Automotive Segment,full integration of the working enterprise of BMW Brilliance Automotive Ltd. (BBA), greater gross sales volumes and constructive product combine results boosted revenues for the 12-month interval by 7.0% to € 132,277 million (2022: € 123,602 million / adjusted for foreign money translation results: +11.3%), as did greater revenues from aftersales enterprise. Negative foreign money translation results, primarily from the Chinese renminbi and the US greenback, impacted income progress: Excluding these headwinds, revenues noticed a major improve of 11.3% for the complete yr.

Depreciation and amortisation from the acquisition worth allocation in reference to the complete consolidation of about € 1.4 billion impacted the phase’s price of gross sales for the complete yr in addition to a slight improve in gross sales and administrative prices.

The Automotive Segment’s earnings earlier than monetary end result (EBIT) for the complete yr have been additionally considerably greater, at € 12,981 million (2022: € 10,635 million / +22.1%). A constructive impact got here from the full-year inclusion of the BBA end result and from the web impact of quantity, combine and pricing, pushed by the upper gross sales quantity and the upper share of high finish in addition to BMW M autos. However, headwinds resulted from greater analysis and growth spending and elevated manufacturing prices towards 2022 in addition to the upper share of electrified autos. The EBIT margin for this era was 9.8% (2022: 8.6%; +1.2 %-pts.). Excluding depreciation and amortisation for BBA belongings from the acquisition worth allocation of € 1.4 billion beforehand referred to, the EBIT margin was 10.8%.

Thanks to this constructive earnings growth, the phase’s free money circulate amounted to € 6,942 million on the finish of December (2022: € 11,071 million / -37.3%). The earlier yr included the constructive one-time impact of round € 5 billion from the complete consolidation of BMW Brilliance.

 

BMW AG share buyback programme continued

Based on the authorisation issued on the Annual General Meeting in May 2022, the Board of Management made the choice to purchase again shares price as much as € 2.0 billion. During the preliminary share repurchase programme between July 2022 and June 2023, BMW AG repurchased a complete of twenty-two,199,529 shares of frequent inventory for
€ 1,850 million and 1,923,871 shares of most popular inventory for € 150 million. This is equal to three.78% of the present share capital. In accordance with the Board of Management resolution, all shares acquired have been retired within the third quarter of 2023.

The second share buyback programme, price as much as € 2.0 billion, obtained underway in July 2023. By the tip of 2023, BMW AG had acquired 4,218,363 shares of frequent inventory and 942,892 shares of most popular inventory. A complete buy worth (excluding incidental acquisition prices) of round € 500 million was paid for the shares repurchased on this first tranche. This corresponds to 0.81% of the present share capital.

The second share buyback programme continued in January 2024 with the second tranche. As of 12 March 2024, the BMW Group had purchased again 7,531,194 shares with a complete worth of € 734 million and thus holds 1.18% of the present share capital.

The second share buyback programme will probably be concluded no later than 31 December 2025.

Dividend of € 6.00 proposed

Shareholders will even take part within the success of economic yr 2023. Subject to the approval of the Annual General Meeting, thecompany’s unappropriated revenue (in response to the German Commercial Code) of € 3,802 million (2022: € 5,481 million / -30.6%), representing a preliminary payout ratio of 33.7% (2022: 30.6%), will probably be distributed to shareholders from BMW AG’s web revenue.

Taking into consideration the goal vary of 30-40% of web revenue for the payout ratio attributable to the shareholders of BMW AG, the Board of Management and Supervisory Board will suggest a dividend of € 6.00 per share of frequent inventory (2022: € 8.50) and € 6.02  per share of most popular inventory (2022: € 8.52) to the Annual General Meeting on 15 May. BMW Group workers will as soon as once more take part within the firm’s success in an applicable method.

 

Stable earnings efficiency in Financial Services Segment

In the troublesome aggressive panorama of economic yr 2023, BMW Group Financial Services reported slight progress in its quantity of recent enterprise with retail clients, which elevated to € 57,333 million (2022: € 55,449 million / +3.4%). Due to the improved product combine, the common financing quantity per automobile rose. The variety of new contracts concluded with retail clients reached the earlier yr’s degree of 1,542,514 (2022: 1,545,490 contracts / -0.2%). At the tip of the yr, the penetration fee – the share of recent BMW Group autos leased or financed by the Financial Services Segment – stood at 38.2% (2022: 41.0% / –2.8 %-pts.).

In the 12-month interval, the phase reported pre-tax earnings of € 2,962 million (2022: € 3,205 million / -7.6%). This decline in earnings primarily resulted from greater refinancing prices and the smaller whole portfolio of 4,952,318 retail contracts (31 Dec. 2022: 5,210,246 contracts / -5.0%).

BMW Group Financial Services benefited from persevering with excessive earnings from the resale of end-of-lease autos – though this was much less constructive year-on-year and due to this fact had a dampening impact on earnings. Prices for used automobiles are more likely to proceed this pattern in 2024.

Lower credit score threat provisioning in comparison with the earlier yr had a constructive impact. In 2022, credit score threat provisioning had been closely influenced by geopolitical uncertainties and weaker macroeconomic prospects.
The credit score loss ratio for 2023 remained on the low fee of 0.18%.

“The Financial Services segment supports our sales growth with its financing activities and makes a major contribution to earnings. We will be integrating our financial services business even more closely into our sales processes and our ‘customer journey’ going forward. Digitalisation of our processes will play a key role in this. In all areas of the company, digitalisation and AI will contribute to greater efficiency, speed and value creation,” in response to CFO Mertl. “Also in view of the upcoming demographic change, these two topics are essential for the BMW Group.” 

At 17.2%, return on fairness within the Financial Services Segment for monetary yr 2023 (2022: 17.9% / -0.7%-pts.) was according to the adjusted steering of 16-19%.

Motorcycles Segment steps up deliveries once more in centenary yr

BMW Motorrad celebrated its centenary in 2023 with two restricted version fashions known as “100 years”, three new fashions and 4 mannequin updates. In its anniversary yr, the phase additionally achieved a brand new all-time excessive, with a complete of 209,066 bikes and scooters delivered to clients (2022: 202,895 models). This represents a slight improve of three.0% and confirms expectations for the monetary yr.

In the 12-month interval, BMW Motorrad revenues rose barely to € 3,214 million (2022: € 3,176 million / +1.2%; adjusted for foreign money translation results: +3.2%). The phase EBIT for January to December was € 259 million (2022: € 257 million / +0.8%) and due to this fact on a par with the earlier yr. The EBIT margin stood at 8.1% (2022: 8.1%).

 

BMW Group steers profitable course in closing quarter of the yr

The BMW Group achieved dynamic progress in deliveries and a robust monetary efficiency within the fourth quarter of 2023. It delivered 717,620 premium autos to clients (This fall 2022: 651,794 models / +10.1%), together with 128,849 fully-electric autos (This fall 2022: 87,557 models / +47.1%).

Group revenues noticed a strong improve within the fourth quarter to achieve € 42,968 million (2022: € 39,522 million / +8.7%). Group analysis and growth prices have been greater within the closing quarter of the yr, at € 2,080 million (This fall 2022: € 1,739 million / +19.7%). The R&D ratio (in response to the German Commercial Code) was secure at 5.9% (This fall 2022: 5.8% / +0.1 %-pts.). The BMW Group’s capital expenditure totalled € 3,758 million (2022: € 3,111 million / +20.8%).

Group earnings earlier than monetary end result (EBIT) of € 4,412 million (2022: € 3,500 million / +26.1%) have been considerably greater year-on-year. Group earnings earlier than tax (EBT) rose considerably within the fourth quarter to € 3,682 million (2022: € 3,253 million / + 13.2%). The EBT margin for this era was 8.6% (2022: 8.2%).

Group web revenue for the fourth quarter totalled € 2,614 million (2022: € 2,175 million / +20.2%).

Automotive Segment revenues posted strong fourth-quarter progress to achieve € 37,283 million (2022: € 34,571 million / +7.8%; adjusted for foreign money translation results: +12.2%).

Earnings earlier than monetary end result (EBIT) confirmed strong progress within the fourth quarter to € 3,171 million (2022: € 2,932 million / +8.2%). The EBIT margin of 8.5% (2022: 8.5%) remained secure from the earlier yr, underlining the sturdy working efficiency of the Automotive Segment within the closing quarter of the yr which confirmed the seasonally excessive price burden.

Solid earnings growth within the Automotive Segment resulted in a free money circulate of € 1,183 million within the fourth quarter (2022: € 1,195 million / -1.0%).

In the Financial Services Segment, the penetration fee climbed to 39.5% within the fourth quarter and has due to this fact maintained its progress trajectory (2022: 37.1% / +2.4 proportion factors). The phase’s fourth-quarter pre-tax earnings (EBT) totalled € 511 million (2022: € 533 million / -4.1%). This slight lower was as a consequence of greater refinancing prices and a smaller whole portfolio.

Employee numbers greater year-on-year

The BMW Group had 154,950 workers on the finish of 2023 (2022: 149,475 / +3.7%). This slight improve in worker numbers was primarily in growth and IT, in addition to within the BMW Group’s international manufacturing community.

Proposed re-election of supervisory board members

With the Annual General Meeting on May 15, 2024, the present mandate of Supervisory Board members Dr. h.c. Susanne Klatten, Stefan Quandt and Dr. Vishal Sikka will come to an finish. The Supervisory Board will suggest re-electing Dr. h.c. Susanne Klatten, Stefan Quandt and Dr. Vishal Sikka for one more four-year mandate.

* * *

You will obtain additional info on the Group Financial Statements 2023 and the outlook for the present monetary yr on the BMW Group Annual Conference on 21 March 2024. You can observe the digital occasion from 9:00 am (CET) dwell within the web at: https://www.live.bmwgroup.com/en/live-streaming/, adopted by the dwell streaming of the Annual Conference Q+A with media from 10:30-11:30 am.
The dwell streaming of the Investor relations Q+A with analysts will probably be streamed from 12:30-01:45 pm at: https://www.bmwgroup.com/en/investor-relations/annual-conferences.html.

The BMW Group Report 2023 will probably be revealed on 21 March at 7.30 a.m. (CET) at https://www.bmwgroup.com/en/investor-relations/company-reports.html.

The BMW Group – an summary: 
Full yr 2023

2023

2022

Change in %

Deliveries to clients

 

 

 

 

Automotive1

models

2,554,183

2,399,632

6.4

BMW

models

2,252,793

2,100,689

7.2

MINI

models

295,358

292,922

0.8

Rolls-Royce

models

6,032

6,021

0.2

Motorcycles

models

209,066

202,895

3.0

 

 

 

Employees (as of 31 Dec. 2023)

154,950

149,475

3.7

EBIT margin Automotive Segment

p.c

9.8%

8.6%

14.1

EBIT margin Motorcycles Segment

p.c

8.1%

8.1%

-0.4

EBT margin BMW Group2

p.c

11.0%

16.5%

-33.3

 

 

 

Revenues

€ million

155,498

142,610

9.0

Automotive

€ million

132,277

123,602

7.0

Motorcycles

€ million

3,214

3,176

1.2

Financial Services

€ million

36,227

35,122

3.1

Other Entities

€ million

11

8

37.5

Eliminations

€ million

-16,231

-19,298

-15.9

 

 

 

Profit earlier than monetary end result (EBIT)

€ million

18,482

13,999

32.0

Automotive

€ million

12,981

10,635

22.1

Motorcycles

€ million

259

257

0.8

Financial Services

€ million

3,055

3,163

-3.4

Other Entities

€ million

-13

-203

-93.6

Eliminations

€ million

2,200

147

–

 

 

 

Profit earlier than tax (EBT)

€ million

17,096

23,509

-27.3

Automotive

€ million

12,642

18,918

-33.2

Motorcycles

€ million

258

269

-4.1

Financial Services

€ million

2,962

3,205

-7.6

Other Entities

€ million

-100

995

–

Eliminations

€ million

1,334

122

–

 

 

 

Group earnings taxes

€ million

-4,931

-4,927

0.1

Net revenue

€ million

12,165

18,582

-34.5

Earnings per share of frequent inventory

€

17.67

27.31

-35.3

Earnings per share of most popular inventory3

€

17.69

27.33

-35.3

1 Deliveries embody the three way partnership BMW Brilliance Automotive Ltd., Shenyang.

2 Ratio of Group earnings earlier than taxes to Group revenues.

3 Common/most popular shares. Earnings per share of most popular inventory are calculated by distributing the earnings required to cowl the extra dividend of € 0.02 per most popular share proportionally over the quarters of the corresponding monetary yr.

The BMW Group – an summary: This fall 2023

This fall 2023

This fall 2022

Change in %

Deliveries to clients

 

 

 

 

Automotive1

models

717,620

651,794

10.1

BMW

models

631,526

566,823

11.4

MINI

models

84,616

83,651

1.2

Rolls-Royce

models

1,477

1,320

11.9

Motorcycles

models

44,349

43,562

1.8

 

 

 

Employees (as of 31 Dec. 2023)

154,950

149,475

3.7

EBIT margin Automotive Segment

p.c

8.5%

8.5%

0.3

EBIT margin Motorcycles Segment

p.c

-7.6%

-9.4%

-19.0

EBT margin BMW Group2

p.c

8.6%

8.2%

4.1

 

 

 

Revenues

€ million

42,968

39,522

8.7

Automotive

€ million

37,283

34,571

7.8

Motorcycles

€ million

643

691

-6.9

Financial Services

€ million

9,504

9,086

4.6

Other Entities

€ million

2

2

0.0

Eliminations

€ million

-4,464

-4,828

-7.5

 

 

 

Profit earlier than monetary end result (EBIT)

€ million

4,412

3,500

26.1

Automotive

€ million

3,171

2,932

8.2

Motorcycles

€ million

-49

-65

-24.6

Financial Services

€ million

606

536

13.1

Other Entities

€ million

0

-16

-100.0

Eliminations

€ million

684

113

–

 

 

 

Profit earlier than tax (EBT)

€ million

3,682

3,253

13.2

Automotive

€ million

3,031

3,009

0.7

Motorcycles

€ million

-53

-57

-7.0

Financial Services

€ million

511

533

-4.1

Other Entities

€ million

-212

-263

-19.4

Eliminations

€ million

405

31

–

 

 

 

Group earnings taxes

€ million

-1,068

-1,078

-0.9

Net revenue

€ million

2,614

2,175

20.2

Earnings per share of frequent inventory

€

3.77

3.43

9.9

Earnings per share of most popular inventory3

€

3.78

3.44

9.9

1 Deliveries embody the three way partnership BMW Brilliance Automotive Ltd., Shenyang

2 Ratio of Group earnings earlier than taxes to Group revenues.

3 Common/most popular shares. Earnings per share of most popular inventory are calculated by distributing the earnings required to cowl the extra dividend of € 0.02 per most popular share proportionally over the quarters of the corresponding monetary yr.

GLOSSARY – explanatory feedback on key efficiency indicators

 

Deliveries to clients
A brand new or used automobile is recorded as a supply as soon as it’s handed over to the tip consumer (which additionally consists of leaseholders beneath lease contracts with BMW Financial Services). In the US and Canada, finish customers additionally embody (1) sellers after they designate a automobile as a service loaner or demonstrator automobile and (2) sellers and different third events after they buy an organization automobile at public sale and sellers after they buy firm autos straight from the BMW Group. Deliveries could also be made by BMW AG, certainly one of its worldwide subsidiaries, a BMW Group retail outlet, or unbiased third-party sellers. The overwhelming majority of deliveries – and therefore the reporting of deliveries to the BMW Group – is made by unbiased third-party sellers. Retail automobile deliveries throughout a given reporting interval don’t correlate on to the revenues that the BMW Group recognises in respect of that exact reporting interval.

EBIT

Profit earlier than monetary end result. Profit earlier than monetary end result includes revenues much less price of gross sales, much less promoting and administrative bills and plus/minus web different working earnings and bills.

EBIT margin

Profit/loss earlier than monetary end result as a proportion of revenues.

EBT

EBIT plus monetary end result.

Payout ratio

The payout ratio is preliminary. Although the Management Board and Supervisory Board are proposing a set dividend per share to the overall assembly, the variety of dividend-entitled shares is predicted to fall even additional on account of the continued share buy-back program between now and the Annual General Meeting. Accordingly, the overall quantity paid out to shareholders till May 15 presumably will even change.

PHEV

Plug-in-hybrid electrical automobile.

If you’ve gotten any questions, please contact:

BMW Group Corporate Communications

 

Dr Britta Ullrich, Finance Communications

Telephone: +49 89 382-18364

Email: britta.ullrich@bmwgroup.com

Eckhard Wannieck, head of Communications BMW Group, Finance, Sales

Telephone: +49 89 382-24544

Email: eckhard.wannieck@bmwgroup.com

Media web site: www.press.bmwgroup.com/deutschland

Email: presse@bmwgroup.com

 

Volkswagen

Brand Group Core improves end result and return in 2023 – nearer cooperation between the amount manufacturers is gaining traction

The Brand Group Core delivered strong monetary ends in 2023. Higher quantity and value results, improved availability of elements and decrease mounted prices had a constructive impact, whereas larger product prices and the deconsolidation of Volkswagen Group Rus had a damaging affect on the end result. The world market and aggressive atmosphere stays difficult. The Brand Group Core is engaged on additional stabilizing its efficiency with a view to enhancing its resilience in opposition to exterior components, specifically given the slower growth of the e-mobility market in Europe.

The systematic growth of cooperation within the agreed cross-brand core motion areas is having a sustained constructive impact on key monetary efficiency indicators: Brand Group Core working revenue earlier than particular objects in 2023 grew 80% year-on-year to 7.3 billion euros (2022: 4.1 billion euros). The essential driver right here was a 19% enhance in unit gross sales to 4.826 million autos (2022: 4.069 million autos). Net money move elevated from 1.1 billion euros in 2022 to five.6 billion euros. This growth was mainly attributable to the one-off discount of inventories that largely corrected the stock build-up because of the scarcity of logistics assets within the earlier 12 months. The working return earlier than particular objects improved by 1.7 share factors to five.3% (2022: 3.6%), gross sales income climbed 21% to 138 billion euros (2022: 114 billion euros).

Brand Group Core improves result and return in 2023 – closer cooperation between the volume brands is gaining traction

Focus on rigorous price self-discipline and profitability within the Brand Group Core.

Thomas Schäfer, Member of the Board of Management of Volkswagen AG, Head of the Brand Group Core & CEO of the Volkswagen Passenger Cars Brand, stated: “The closer cooperation in the Brand Group Core is gaining traction. Our work is beginning to pay off. Our networking has become stronger and more systematic. We now have several projects where cooperation extends beyond former brand boundaries. We have the right team spirit. As the volume brands’ CEO team, we have pushed hard to drive this transformation forward in recent months. Our common goal: to fully exploit our performance potential as a brand group by sharing knowledge and working together to find the best solutions. With our strong, clearly differentiated models we ideally cover important market segments without cannibalizing business for our sister brands. And our networking will become ever closer in order to leverage our enormous combined potential even more effectively in future under difficult economic conditions and within a rapidly changing automotive industry. That is good for each brand, for the Group and for our customers.”

Key figures for the Brand Group Core:

Key financials

2023

2022

Change 23/22

Unit gross sales
(incl. different manufacturers’ autos)

4,826,276 autos

4,069,342 autos

+19%

Sales income

137.770 billion euros

113.762 billion euros

+21%

Operating revenue earlier than particular objects

7.273 billion euros

4.045 billion euros

+80%

Operating return earlier than particular objects

5.3%

3.6%

+1.7%-points

Net money move

5.625 billion euros

1.131 billion euros

All the person manufacturers Volkswagen, Škoda, SEAT/CUPRA and Volkswagen Commercial Vehicles contributed to the constructive total efficiency of the Brand Group Core – and thus additionally the Volkswagen Group – within the 2023 fiscal 12 months.

Unit gross sales on the Volkswagen model grew by 13% to 2,519 million autos (2022: 2,236 million autos) within the 2023 fiscal 12 months. The model’s gross sales income climbed to 86,4 billion euros (2022: 73,8 billion euros). The essential drivers right here have been the license enterprise with China and a powerful efficiency in after-sales enterprise. The working revenue earlier than particular objects of three.5 billion euros (2022: 2.6 billion euros) additionally mirrors the brand new give attention to effectivity and profitability. At 4.1%, the working return earlier than particular objects was 0.5 share factors above the determine for the earlier 12 months (2022: 3.6%). The improved working end in 2023 exhibits that the model is strengthening its resilience and enhancing its competitiveness. Given the growing depth of competitors worldwide and the related monumental stress on costs and prices, the efficiency program agreed final December will contribute to stabilizing the return on gross sales trajectory from 2024. The Volkswagen model is thus laying the groundwork to strengthen resilience in a persistently difficult market atmosphere.

Patrik A. Mayer, Member of the Board of Management of the Volkswagen Brand liable for “Finance”, commented: “The solid results for the 2023 fiscal year show we are becoming more financially robust. Volkswagen is the Group’s core brand and we must live up to our responsibility – with good products, and also with good figures. Systematically implementing our Accelerate Forward performance program will make us significantly more effective and faster by 2026: not only in our factories and in development, but also in administration and sales. We therefore believe we are well prepared for a demanding year in 2024 with its muted economic outlook.”

Škoda Auto additionally reported a profitable 2023 fiscal 12 months. Global unit gross sales by Škoda Auto final 12 months ran at 866,800 autos (+18,5%), with the all-electric Enyaq recording the very best progress (81,700 autos bought; +52%). The all-electric mannequin was one of many best-selling electrical autos in lots of European markets. The Škoda Auto Group reported report gross sales income of 26.5 billion euros in 2023 (2022: 21,0 billion euros; +26,2 %). The model’s working revenue earlier than particular objects got here in at 1.8 billion euros, 183% larger than the prior-year degree (2022: 0.63 billion euros).

At 6.7%, the working return earlier than particular objects was effectively above the extent of the earlier 12 months (2022: 3.0 %). These sturdy outcomes underpin the corporate’s strong enterprise mannequin for making the mandatory investments within the ongoing transformation to e-mobility.

SEAT/CUPRA placed on a convincing efficiency final 12 months with a marked 28% rise in unit gross sales to 602,000 autos (2022: 468,000 autos). The model reported 31% progress in gross sales income to 14,3 billion euros (2022: 10,9 billion euros). Operating revenue earlier than particular objects ran at 625 million euros, effectively up on the earlier 12 months’s determine of 33 million euros. The group-wide enhance in profitability is clearly seen: the working return earlier than particular objects rose to 4.4% (2022: 0.3%). This is mainly attributable to the success of CUPRA with larger unit gross sales and constructive results from effectivity enhancements.

Business growth on the Volkswagen Commercial Vehicles (VWN) model was additionally constructive: unit gross sales elevated by some 25% to 423,000 autos (2022: 340,000 autos) and gross sales income grew 34% to fifteen billion euros (2022: 11 billion euros). Furthermore, there was a 65% rise in working revenue earlier than particular objects to 873 million euros (2022: 529 million euros). Progress with driving profitability was confirmed by a rise within the working return earlier than particular objects to five.7%, in comparison with 4.6% within the earlier 12 months. This report efficiency is attributable to the model’s strong positioning. Vehicles for personal and industrial clients, the enduring ID.Buzz and the distinctive California fashions fulfill particular person buyer needs. This efficiency was achieved by the systematic implementation of the effectivity program at VWN and the related price self-discipline.

Outlook
The Brand Group Core plans to extend its end in 2024, bolstered by the associated results from the amount manufacturers’ ongoing efficiency packages.
Overall, the Brand Group Core continues to focus on an working return of 8% in 2026. Improved cooperation among the many sister manufacturers is predicted to leverage synergy and scale results and contribute to attaining this goal. This contains optimizing product prices, decreasing overheads below the assorted efficiency packages in place on the particular person manufacturers, and thereby safeguarding sustainable progress. In addition, the Brand Group Core plans additional quantity progress on account of the improved provide state of affairs for vital uncooked supplies and elements. Further progress in key areas (e.g. North America) in addition to the event of latest markets (e.g. Škoda Auto / Vietnam) are anticipated to have a constructive impact on return. The present fiscal 12 months will likely be formed by sturdy competitors, political challenges and the mandatory investments for the longer term. Clear-cut tasks and a task-sharing strategy kind the premise for the sturdy cooperation that can proceed to drive the success of the Brand Group and your complete Volkswagen Group in future.


Organizational observe:
Škoda Annual Press ConferenceFriday, March 15, 10:00 a.m.
VWN Annual Press ConferenceThursday, March 21, 09:00 a.m.
SEAT/CUPRA Annual Press Conference Thursday, March 21, 11:00 a.m.

Replay

Annual Media Call 2024

Fiscal Year 2023 of the Volkswagen Brand

Fiscal Year 2023 of the Volkswagen Brand

Charts Thomas Schäfer

Annual Media Call 2024

Charts Patrik Mayer

Annual Media Call 2024

More details about the Brand Group Core

Brand Group Core

The model group CORE is the organizational merger of the Volkswagen Group’s quantity manufacturers. With greater than half of the Group’s automobile gross sales and over 200,000 workers from 5 manufacturers, the cross-border model group CORE is the reply to lots of the challenges we’re at present dealing with.

Images

Opinion

The authorities is making its personal EV goal unattainable to hit

As anticipated, there was no monetary assist to incentivise the uptake of electric cars within the chancellor’s budget this week. And with a basic election now being tipped for as early as May, it’s extraordinarily unlikely that any assist will likely be forthcoming this facet of autumn – if ever. 

Several automotive makers have reacted furiously, the underlying sentiment being that EVs have been pushed to patrons at a set share whether or not they need them or not and automotive makers are those on the hook in the event that they don’t attain that threshold.

As a reminder, the UK must get EVs to 22% of automotive gross sales this 12 months however has been stalled at 16% for a number of months now.

Mazda

Mazda Financial Services Offers Payment Relief to Customers Affected by California Storms and Floods

Mazda Financial Services Offers Payment Relief to Customers Affected by California Storms and Floods

PLANO, Texas, February 6, 2024 – Mazda Financial Services (MFS) introduced it’s providing fee aid choices to its prospects affected by latest storms and flooding in California. This broad outreach contains any MFS prospects within the designated catastrophe areas. 

Mazda Financial Services cares in regards to the security and well-being of its prospects and desires to assist these affected by this pure catastrophe. Impacted lease and finance prospects residing within the affected areas could also be eligible to make the most of a number of fee aid choices, a few of which embody:

  • extensions and lease deferred funds; 
  • redirecting billing statements; and
  • arranging cellphone or on-line funds.

Customers who wish to focus on their account choices are inspired to contact MFS instantly by calling 866-693-2332.

We lengthen our heartfelt ideas to these affected by the devastating storms.

About Mazda Financial Services 

Mazda Financial Services (MFS) provides automotive finance, lease and wholesale supplier financing services and products to Mazda sellers and prospects within the United States. Mazda Financial Services additionally provides automobile safety merchandise by means of Mazda Protection Products (MPP). For extra info, please go to: www.mazdafinancialservices.com

For additional info: Derrick J. Brown, Mazda Financial Services, (469) 486-9065; Tamara Mlynarczyk, Mazda North American Operations, media@mazdausa.com

ToyotaUk

TMC Announces April Through December 2023 Financial Results

Toyota Motor Corporation (TMC) at present introduced its monetary outcomes for the third quarter, which ended December 31, 2023.

TOYOTA CITY, Japan (Feb. 6, 2024) — Consolidated automobile gross sales totaled roughly 7,295,000 items, a rise of roughly 804,000 items in comparison with the identical interval final fiscal yr. On a consolidated foundation, web revenues for the interval totaled 34.022 trillion yen ($237.9 billion), a rise of 23.9%. Operating earnings elevated from 2.098 trillion yen ($15.4 billion) to 4.24 trillion yen ($29.7 billion), whereas earnings earlier than earnings taxes 1 was 5.357 trillion yen ($37.5 billion). Net earnings 2 elevated from 1.899 trillion yen ($14.0 billion) to three.9472 trillion yen ($27.6 billion).

Regions

North America: Vehicle gross sales totaled roughly 2,161,000 items, a rise of 309,000 items. Operating earnings, excluding the impression of valuation positive aspects/losses from rate of interest swaps, elevated by 503.2 billion yen ($3.5 billion) to 552.5 billion yen ($3.8 billion).

Japan: Vehicle gross sales totaled roughly 1,630,000 items, a rise of 228,000 items.  Operating earnings, excluding the impression of valuation positive aspects/losses from rate of interest swaps, elevated by 1.141 trillion yen ($7.9 billion) to 2.686 trillion yen ($18.8 billion).

Europe: Vehicle gross sales totaled roughly 884,000 items, a rise of 127,000 items. Operating earnings, excluding the impression of valuation positive aspects/losses from rate of interest swaps, elevated by 294.4 billion yen ($2.0 billion) to 308.8 billion yen ($2.1 billion).

Asia: Vehicle gross sales totaled roughly 1,376,000 items, a rise of 83,000 items. Operating earnings, excluding the impression of valuation positive aspects/losses from rate of interest swaps, elevated by 97.1 billion yen ($679 million) to 651.7 billion yen ($4.6 billion).

Other areas (together with Central and South America, Oceania, Africa, and the Middle East): Vehicle gross sales totaled roughly 1,245,000 items, a rise of 57,000 items. Operating earnings, excluding the impression of valuation positive aspects/losses from rate of interest swaps, elevated by 13.4 billion yen ($94 million) to 190.1 billion yen ($1.3 billion).

Financial Services

Financial companies working earnings decreased by 14.9 billion yen ($104 million) to 470.6 billion yen ($3.3 billion). Including valuation positive aspects/losses, working earnings elevated by 93.0 billion yen ($650 million) to 416.9 billion yen ($2.9 billion).

(*FY24 foreign money translations above are approximate and primarily based on a median 143-yen-to-dollar alternate price; FY23 is 136-yen-to-dollar alternate price)

Forecast

For the fiscal yr ending March 31, 2024, TMC estimates consolidated automobiles gross sales shall be 9.45 million items. Based on an alternate price assumption of 143 yen to the U.S. greenback, TMC forecasts consolidated web income of 43.5 trillion yen ($304.2 billion), working earnings of 4.9 trillion yen ($34.3 billion), earnings earlier than earnings taxes of 6.2 trillion yen ($43.4 billion), and web earnings of 4.5 trillion yen ($31.5 billion).

(*all foreign money translations above are approximate and primarily based on a median 143 -yen-to-dollar alternate price.)

1 Income earlier than earnings taxes and fairness in earnings of affiliated firms

2 Net earnings attributable to Toyota Motor Corporation

For extra info, click here.

VolvoCars

Invitation to Volvo Cars’ presentation of the fourth quarter and year-end report 2023

Volvo Cars will publish its fourth-quarter and full-year 2023 monetary outcomes on Thursday, 1 February 2024 at 06:00 UK time (07:00 CET). 

At 07:00 UK time (08:00 CET), President and CEO Jim Rowan, CFO Johan Ekdahl and Deputy CEO and Chief Commercial Officer Björn Annwall will host a livestream for media, buyers and analysts. The displays will likely be held in English and adopted by a Q&A session.

We look ahead to your participation. See under detailed info: 

07:00 UK time (08:00 CET)          Presentation for media, buyers and analysts 
 
Link: https://live.volvocars.com 
If you tune in from China, please use this hyperlink: https://live.volvocars.com.cn

It will likely be potential to ask questions throughout the Q&A session following the primary presentation. To take part, you’ll be able to both use the chat perform on-line to sort your query or you’ll be able to name in. To name in, members have to register and can then obtain the dial-in particulars and particular person PIN.

Link to register

——————————-

Volvo Cars in 2022 
For the complete 12 months 2022, Volvo Car Group recorded an working revenue of SEK 22.3 billion. Revenue in 2022 amounted to SEK 330.1 billion, whereas world gross sales reached 615,121 automobiles.  

About Volvo Car Group 
Volvo Cars was based in 1927. Today, it is without doubt one of the most well-known and revered automotive manufacturers on the earth with gross sales to clients in additional than 100 international locations. Volvo Cars is listed on the Nasdaq Stockholm alternate, the place it’s traded underneath the ticker “VOLCAR B”. 

“For life. To give people the freedom to move in a personal, sustainable and safe way.” This goal is mirrored in Volvo Cars’ ambition to grow to be a totally electrical automotive maker by 2030 and in its dedication to an ongoing discount of its carbon footprint, with the ambition to be a climate-neutral firm by 2040. 

As of December 2022, Volvo Cars employed roughly 43,200 full-time workers. Volvo Cars’ head workplace, product improvement, advertising and administration capabilities are primarily positioned in Gothenburg, Sweden. Volvo Cars’ manufacturing crops are positioned in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The firm additionally has R&D and design centres in Gothenburg, Camarillo (US) and Shanghai (China). 

Motorsport

Brabham’s Track-Only BT62 Supercar Is Dead

Starting an automaker within the twenty first century is an extremely difficult endeavor. It takes immense monetary help, a rock-solid marketing strategy, and many luck. Brabham Automotive, the low-production supercar producer based in 2018, is the newest automotive model to throw within the towel.

Co-founder David Brabham, youngest son of racing legend Jack Brabham, introduced final week on Instagram that he and Fusion Capital, the funding group backing the model, have ended their relationship and dissolved the corporate, marking the tip for the BT62 supercar.

 

The BT62 was Brabham Automotive’s first product, launched in 2018. It featured aerodynamics able to producing 2,646 kilos of downforce, which surpassed the automobile’s 2,143-pound weight. Power got here from a naturally aspirated 5.4-liter V8 making 700 horsepower and 492 pound-feet of torque. The firm hoped to promote 70 of them, with costs beginning on the trendy equal of $1.35 million every.

Following the observe automotive, Brabham introduced a street-legal model of the BT62 in 2020 called the BT62R. It regarded largely equivalent to the circuit-focused machine however with a quieter exhaust, air con, adaptable suspension, and a heated windshield. The automobile did not appear to be one thing you’d need to use for a cross-country jaunt however nonetheless appeared way more comfy than the circuit-only variant.


Motorsport

BMW Gas Car Sales Have Peaked, But The Manual Is Staying For Now

BMW‘s Chief Financial Officer, Walter Mertl, lately declared a major shift within the firm’s gross sales dynamics. Mertl says the tipping level for combustion engine car gross sales has been surpassed and emphasised that electrical automobiles now drive the vast majority of the model’s gross sales development.

According to Mertl, the plateau in combustion automotive gross sales is anticipated to persist and progressively decline. He attributed this development to impending environmental laws set to limit the gross sales of conventional autos. With regulatory deadlines looming in areas from China and the European Union to sure US states, automotive producers are going through elevated strain to speed up the event and manufacturing of electrical autos.

BMW, responding to those challenges, achieved a 15 % all-electric gross sales share up to now yr. Even extra impressively, the i4 M50 was BMW M’s best-selling product for the second consecutive yr. The firm is ambitiously concentrating on a 33 % share by 2026, unveiling six new fashions beneath its Neue Klasse EV lineup. The first one to reach in 2025 is anticipated to be an X3-sized electric SUV.

However, Mertl acknowledged that BMW’s revenue margins for combustion engine and all-electric automobiles will not align till no less than 2026. He pointed to the upper prices related to incorporating new battery applied sciences in subsequent fashions. 

Despite the shift in direction of electrical mobility, BMW stays dedicated to promoting autos with guide transmissions. The firm has confirmed that the M2, M3, and M4 will proceed to supply guide gearboxes, no less than for the present technology of automobiles. When questioned concerning the share of guide gearbox gross sales, BMW informed TopGear that 15 to twenty % of M3 and M4 fashions have been offered with three-pedal gearboxes, and even more for the M2.