BMW Notices Higher Car Prices and Raises Forecasts

German car manufacturer BMW expects to earn more money this year than it previously counted on. This is mainly due to the higher prices for cars, both new and second-hand.

 

The extra revenues compensate for the problems caused by shortages of parts, especially chips, which are disrupting production.

BMW now expects to realize a gross profit margin of 9.5 to 10.5 percent this year. In an earlier forecast, that was still 7 to 9 percent. BMW also expects to do better in return on equity than previously assumed. As a result, profit before tax will be significantly higher this year.

BMW previously warned that deliveries in the second half of the year might come under pressure as a result of chip shortages. However, so far, BMW has reported only minor production stoppages at its factories.

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