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BMW cautious on business prospects due to Brexit, tariff disputes

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German car manufacturer, BMW, on Tuesday said it cannot make predictions on its business prospects for next year, given the international trade disputes and threat of a no-deal Brexit.

The carmaker’s Chief Financial Officer, Nicolas Peter, said a disorderly Brexit would represent deterioration from the current status.

“This will, as a consequence, mean that we will have to somewhat raise prices in different markets.

“And accordingly, we will have to roll back the production in Oxford somewhat,’’ Peter said.

BMW produces the mini line of compact cars at its main factory in Britain.

“The first concrete measure will be not to produce on Oct. 31 and Nov. 1, to be logistically safeguarded,’’ Peter said.

Britain is currently expected to leave the EU by the end of October.

Peter said the company is making investments in both sport utility vehicles and flatter cars, even though SUVs made up almost half of all BMW vehicles sold in August.

The company’s Chief Executive, Oliver Zipse, also said that BMW would be able to offer its customers all relevant motor types.

According to him, such include conventional engines that set standards in efficiency, battery-powered motors along with plug-in hybrids and in future also hydrogen fuel cells.

However, the carmaker plans to make significant headway over the next two years in the sale of electric cars.

“By the end of 2021, we should be able to put a total of one million electrified cars on the road,’’ Zipse said.
YI/AIB

Edited by Yahaya Isah/Abdulfatah Babatunde

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