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5 May 2022
BMW Profits Soar over Robust Pricing and Chinese Joint Venture Stake
The Index Today
Prominent carmaker BMW has reported record first-quarter profits on Thursday, spurred by the reappraisal of its stake in its Chinese joint venture, as well as robust pricing which has allowed it to retain its fiscal outlook for 2022, in spite of fluctuating commodity costs.
According to Reuters, the reassessment of BMW’s stake in its joint undertaking with Brilliance Auto Group from 50% to 75%, paved the way for an initial profit of 7.7 billion euros ($8.2 billion). The German automaker also attributed its present bullish results to its sturdy pricing strategy which has helped to boost profits through sales of automobiles coming off lease, especially in the British and American markets.
In a statement, BMW’s CEO Oliver Zipse said, "The strength and resilience of the BMW Group are particularly evident in this challenging environment." However, the firm also acknowledged that "The situation on commodities markets is expected to remain tense." "Energy prices are also likely to remain at a high level," they added.