The BMW Group remains on course towards achieving its targets for the full year, says the company. After implementing controlled cutbacks at many of its plants in March as a response to the foreseeable drop in global demand, the Group initiated a coordinated restart of its production facilities in the second quarter. Since mid-June, all its manufacturing plants have again been working in regular shifts. Nonetheless, cost efficiency and cash management remain decisive factors for best controlling the consequences of the corona pandemic.
“Our swift responsiveness and consistent management strategy enabled us to limit the impact of the corona pandemic on the BMW Group during the first half of the year,” said Oliver Zipse, Chairman of the Board of Management of BMW AG, in Munich. Despite a significant market decline following the corona pandemic the BMW Group was able to achieve a positive profit before tax of € 498 million in the first half year (H1).
“We are now looking ahead to the second six-month period with cautious optimism and continue to target an EBIT margin between 0 and 3% for the Automotive segment in 2020. We are monitoring the situation very closely and managing production capacities in line with market developments and regional fluctuations in customer demand.”
”The BMW Group remains committed to its plans; despite the highly challenging market environment, it will continue to invest in future-oriented technology fields and develop its expertise accordingly. As previously announced, the Group intends to invest more than € 30 billion in research and development up to 2025 with the aim of extending its leading edge in terms of innovation,” the company says.
Group research and development expenses totalling € 2,734 million remained at a high level in the first half of the current financial year (2019: € 2,796 million; ‑2.2%). The figure includes expenses for the ongoing electrification process and, in particular, for developing the BMW iNEXT. As previously reported, capital expenditure on property, plant and equipment as well as on other intangible assets is being undertaken on a prioritised, highly focused basis. The total expense for the first half of the year amounted to € 1,477 million (2019: € 2,175 million; -32.1%).