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BMW's Profitability Hits Lowest Since 2010 Amid Tech Rivalry

  • Auto margin narrows to 8.9% on costly electric-car investments
  • BMW CEO says ‘fully focused’ on implementing technology shift
Bloomberg business news

BMW CEO on Product Lineup, Sales Forecast

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BMW AG reported its weakest profitability since 2010, capping a negative year for Chief Executive Officer Harald Krueger after the luxury-car marque lost its crown to arch-rival Mercedes-Benz.

Amid higher spending on battery-powered and autonomous-driving technologies, BMW’s automotive profit margin narrowed to 8.9 percent in 2016 from 9.2 percent a year earlier, according to a statement on Thursday. The shares fell as much as 4.2 percent, the most in four months.