FRANKFURT/LONDON: German premium carmaker BMW on Wednesday confirmed its 2025 outlook and said it expected some of US tariffs on car imports to decline from July, but warned the duties will have a “notable” second-quarter impact on its business.
“The geopolitical and macroeconomic uncertainty has reached a level we have rarely seen before,” BMW’s Chief Financial Officer Walter Mertl told journalists during a first-quarter earnings call, adding that the carmaker was “closely monitoring” the impact on consumer sentiment.
Most of BMW’s rivals, including Mercedes-Benz, Ford and Stellantis, have all pulled their 2025 forecasts, saying it was too difficult to come up with proper guidance in light of far-reaching import tariffs in the United States, the world’s second-biggest auto market.
But BMW said its 2025 outlook provided in March that had factored in all tariffs announced up to that point, still stood.
The carmaker has forecast earnings before tax on par with 2024 and an operating margin at its automotive segment of 5-7%.
BMW said while it could only estimate the potential impact of tariffs in the current year based on certain assumptions, it expected “some of the tariff increases to be temporary, with reductions from July 2025”.
BMW foresees earnings hit as Europe counts the early cost of tariffs
BMW shares were 2.1% higher at the top of Germany’s blue-chip index at 0702 GMT, as the company reported better-than-expected first-quarter EBIT of 2.02 billion euros ($2.3 billion) at its auto unit, which came in above the 1.85 billion LSEG poll of banks and brokerages.
Citing strong orders and cost discipline, the unit’s operating margin reached 6.9%, down from the 8.8% in the same period of last year, but beating the 6.3% LSEG poll forecast.
“The current pressure on the automotive industry is well known and has left its mark on some industry giants,” said Helge Rechberger of Raiffeisen Research. “It is therefore all the more remarkable that BMW is able to meet its targets for the time being.”
BMW still included the caveat that its actual business performance may deviate if tariffs increase or remain in place for longer than anticipated, also flagging the risk of potential supply bottlenecks for specific parts or raw materials.
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