Posted on Tuesday 29 April 2008
Profit levels for most of the major carmakers were down this quarter, with many including BMW and Daimler seeing their profits fall by double digit figures. BMW announced today that its first-quarter profit fell 17% to $761 million, while Daimler’s profits dropped by a hefty 32 points to end up at $2.03 billion.
BMW has blamed its poor performance on a one-time charge taken to protect it from lower used-car prices and the risk of defaults on loans for leased cars in the U.S., which amounted to $369 million. Daimler, meanwhile, said its profit levels last year were artificially inflated by a one-time gain from the sale of shares and retail property and that this year’s figure was more in line with the carmaker’s true profit levels, reports Reuters.
Both saw sales rise this quarter, with BMW selling 11% more vehicles than one year ago and Daimler’s sales figures up 17%.
Low demand caused in the U.S. and weakening economies both in the U.S. and Europe were also cited as reasons for the profit slumps.
BMW makes 2 billion in a quarter and they’ve promised investment in how many billions of dollars for hydrogen drive? seems like a lot of money to devote to a very distant technology.
If they’re pushing more cars and making less money,.. well that right there is a true gauge of how weak the global economy is right now. and apparently it’s set to get worse.2
Anyone thinks that the $45-$50K price tag on the chick / metrosexual car called the 135 has anything to do with this loss?