Bayerische Motoren Werke AG expects to record an impact of up to €500 million on its 2019 earnings if the U.S. and China continue to impose tariffs, Reuters reported Oct. 12, citing German-language magazine Automobilwoche.
Nicolas Peter, CFO of the German automaker, reportedly told the magazine that U.S.-China trade tensions have already caused an earnings impact of nearly €300 million due to reduced exports of sports utility vehicles from BMW's Spartanburg, S.C., plant to China.
In September, the company cut its profit forecast for the 2018 full year, citing supply restrictions linked to a new emissions testing standard in Europe as well as unfavorable trade and foreign exchange conditions. Approximately 15% of BMW vehicles sold in China are made in the U.S.
Meanwhile, BMW has agreed to acquire a controlling stake in BMW Brilliance Automotive Ltd., the company's Chinese joint venture with Brilliance China Automotive Holdings Ltd.