BMW Loses Ground to Mercedes as Auto Profitability Narrows
- Outlook for car revenue reduced to ‘slight’ gain from ‘solid’
- BMW making ‘significant’ investment in next-generation cars
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BMW AG lost ground to global luxury-car leader Mercedes-Benz as profits from carmaking fell while the euro’s gains prompted the manufacturer to reduce its forecast for automotive revenue.
Amid increased spending to refresh and expand its car lineup, BMW is now predicting a “slight” gain in 2017 auto revenue, compared with its previous forecast for a “solid” increase, the Munich-based company said Tuesday in a statement. Alongside the outlook for a lackluster end to the year, third-quarter the automotive profit margin slipped to 8.3 percent of revenue, below the 9.2 percent at Mercedes, where charges for air-bag recalls and diesel-model fixes held back profitability.