In This Article:
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bayerische Motoren Werke AG (BAMXF) is optimistic about potential tariff relief in the US, which could positively impact their export business.
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The company is heavily invested in the US, with significant investments in electric drivetrain production, indicating a strong commitment to the market.
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Bayerische Motoren Werke AG (BAMXF) has a robust export business from its Spartanburg plant, making it the largest automotive exporter by value in the US.
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The company is actively working on reducing its dealer network in China to improve stability and profitability, which is expected to benefit sales in the second half of the year.
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Bayerische Motoren Werke AG (BAMXF) is strategically positioned in the higher price segments in China, which are less affected by price wars in the lower segments.
Negative Points
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The company faces a low three-digit million impact from punitive tariffs on electric vehicles imported from China to the EU.
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Bayerische Motoren Werke AG (BAMXF) is experiencing challenges in China, with a year-to-date trend worse than expected, raising concerns about achieving flat volume guidance.
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There is uncertainty regarding the outcome of tariff negotiations in the US, which could impact the company's financial performance.
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The company is dealing with FX volatility and raw material cost increases, which could affect profitability.
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Bayerische Motoren Werke AG (BAMXF) has decreased provisions due to warranty issues, indicating potential quality or recall challenges.
Q & A Highlights
Q: Can you provide more details on your optimism regarding tariff relaxation in the US and your outlook for China, given the current trends? A: Oliver Sipse, CEO: We believe the current tariffs in the US are temporary due to ongoing negotiations. Our assumption is that there will be some adaptation of tariffs, as we are a large exporter and heavily invested in the US. Regarding China, we maintain a flattish volume outlook despite a weak start to the year, expecting improvements in the second half due to new product launches and dealer network stabilization.
Q: How are the EU tariffs on electric vehicles from China impacting BMW, and what changes are being made to the Chinese dealer network? A: Oliver Sipse, CEO: The EU's import duty on BMW from China is 31%, which we find unfair. We are pursuing legal action while seeking a political agreement. Walter Merel, CFO: We have reduced our dealer network in China and are finding new investors, which will stabilize and improve profitability in the second half of the year.