BMW warns it could lose money this year
March 19, 2009 by Matt Brogan
BMW Group CEO Norbert Reithofer warned the company could lose money this year if the current global economic situation prevails.
While BMW declined to give any earning outlook for the full year, or even the first quarter, some experts have speculated global car sales could decline between a further 10 and 20 per cent.
“For 2009, the largest risk is the collapsing market. If revenues fall more than 20 percent, you lose money,” Reithofer said at the company’s annual earnings conference.
BMW group’s January and February sales declined 24.3 per cent to 150,838 units, typically such a decline causes a company’s revenues to decline by a similar percentage.
BMW reports sales volumes on a monthly basis, but revenues on a quarterly basis. The first-quarter results for 2009 to be announced on May 6th.
The company said that after an inevitable decline in vehicle sales this year, volumes would pick up again starting in 2010, thanks in part to the planned launches of highly profitable models.
“This year will be a transition year. That is why we have set clear priorities: liquidity, free cash flow and working capital, fixed costs and investments,” Reithofer said. “Our goal is to maintain the BMW group’s independence.”
Interesting BMW has managed itself better than most rivals through these tough financial times with analysts noting the group has managed the rare feat of getting through the fourth quarter without having to drain its cash reserves to fund operations.
Unfortunately the wise accounting couldn’t help maintain sales figures which saw their first annual volume drop since 1993.
At the meeting BMW also confirmed that it will buy electronic components and mechanical parts with Daimler AG, which is owner of Mercedes-Benz.
“We have identified a double-digit number of suitable components,” BMW Chief Financial Officer Friedrich Eichiner said.
Eichiner said the parts were not components that are important to differentiate BMW and Mercedes cars. They also were not parts that customers would see and that combined purchasing would help the two manufacturers and also their suppliers.
On the topic of a possible purchase of Opel, Reithofer affirmed his stance that BMW is not considering buying a stake into General Motors Europe unit.
“We are not interested in Opel at the moment, nor were we in the past,” he said.
Print it: 
make your cars cheaper then people will buy them!!!!
Do away with your ridiculous and pricy options list and people will buy them!!!
Oh, and do away with the aweful ‘bangled’ look, and even more people would buy them!!!
Agree with Dan and SSS, even what you get in a $50K 1 Series…absolute stupidity!! Though I must admit I like the ‘bangled’ look…not on the 1 series, but 3, 5, 6 are good and kinda unique.
make the car fit for RWD market 100%, cheaper cars from East Asia can, so can Europeans!. like the indicator stalk on the right, cut out the weird signalling, make the fuel cap on the left side or have two fuel caps on either side.
Make crap cars and what do you expect…lol
Also, Lexus kills you in looks price options price, coffee..shall i go on…haha
What and we are surprised at this? SSS totally agree…
Shut up Marcoz.
But in Australia I think BMW will still make profit because there are more than enough morons who will still buy inferior product for top dollar (eg. 320i)
South African made BMW? No thanks…
Abc said – “But in Australia I think BMW will still make profit because there are more than enough morons who will still buy inferior product for top dollar (eg. 320i)”
You know what they say, “a fool and his money are easily parted” LOL!
Jeez, what’s with the asshole convention on this site today? BMW’s have always been pricey in this country. If you don’t like them, don’t buy them. The fact still remains that they make some of the best driveline/chassis combinations available.
So the decline is in line with everybody else. To be expected. BMW has survived for many years; i suspect they will remain viable.
BMW along with other ‘luxury’ makes will suffer due to middle & upper managment getting turfed out and values on RV. The luxury market has dropped heaps effecting RV
Well its predictable , all the TOXUS lovers are right into it , obviously some have too much time on their hands.
So right MB ,the early 90s recession battered the prestige market as it will again, including believe it or not LEXUS too
Axel, its probably all of the pent up anger of the Lexus/Toyota supporters, of which I am one, that makes them post on a BMW thread.
Agree that all car makers are going to suffer in the current climate, regardless of where they are from. I notice that BMW are saying they could lose money, which means they may still make some sort of a profit, however small.
Hey firedawg
You really want all cars to have the fuel cap on the same side, as this would cause issues at the fuel stations. Think about it.
To a degree you do get what you pay for with most cars, then there’s BMW, Mini etc – and yup, the options lists are the killers
They would lose less if they hadn’t introduced that horror known as the X6.
Australain made toyota ? no thanks ….
Marcos – in relation to the fuel filler cap
I beleive the Australian Design Regulations state that the fuel filler must be located on the opposite side to that of the exhaust pipe – when the car has dual exhausts its on the opposite side of the “primary” exhaust pipe
Italian Stallion having two fuel fillers one on each side of the car makes good sense as it saves people having to remember what side its on
Not only that but when the fuel nozzle is inserted into one side the other becomes a vent which means you “filler up” quicker – just like on the V8 Supercars.
The 3rd option is to have a centrally located fuel filler like the old mustangs and chargers do – which popped out in between the taillights.. very retro
Hey wheelnut, remember the 56 chevy had a filler cap behind the right tailight , now that confused a few guys.
Streuth there are some complete prats on this site. Totally lacking in intellect!
As for BMW – of course they will suffer like everyone else. Its global. But unlike other BMW have been making decent profits for years and are in a position to ride this easier than others.
I’ve never seen a car with dual filler caps. I prefer the filler cap on the right anyway, generally the lines of the petrol station are more busy on the left sides.
I understand the high starting prices, however we do pay a lot more for a 335i over a 320i for example, compared to other countries. Preferably closer spacing in regards to price.
Didn’t the Jags of old (70’s) have dual cap below the rear window!!
The good old XF Falcon had theirs behind the license plate haha
Cupid stunt , your right the V12 jags and the daimler double sixes had that feature .
Gosh my hands always shake as i type your name , making sure the letters are in the correct position .
Daddy had a jag V12 and mummy had a mini cooper S which also had twin tanks , are the 60s , britain at its best .
Any way tally ho
Yah Yah -quite pleasantly correct Axel old boy. Yah Yah