The profit of the German carmaker BMW fell by 26.4% in the first quarter of 2025. compared to the same period last year. This is reported by the newspaper Le Figaro.
The main reason for the deterioration of BMW's performance is the decline in sales in China, a key market for the German carmaker. Now the company is also expressing concerns about the tariffs imposed by the United States, which could negatively affect the brand's position in that country as well.
According to Le Figaro, before the current decline, BMW had reported record profits for three years in a row. But then the situation changed: falling demand, rising costs (primarily energy) and increased competition from Chinese manufacturers actively strengthening their positions in the electric vehicle market affected the company's financial results.
Similar problems were acknowledged by Volkswagen and Mercedes, which also linked the deteriorating performance of their cars to declining sales in China. Almost all European auto giants are facing serious difficulties, including a rapid decline in profits, mass layoffs and plant closures.