BMW Slashes Profit Forecast, Share Prices Plummet Amid China Sales Slump
BMW has revised its annual profit forecast, now expecting an operating margin of between five and six percent by 2025, a dip from its previous projection of five to seven percent. This news, along with disappointing business in China and new US tariffs affecting BMW and Mercedes-Benz, has led to a significant drop in their share prices and brand values.
BMW's share price plummeted by over 9% in early October 2025, following the profit forecast downgrade. Mercedes-Benz also suffered a loss in brand value, although the extent of its share price drop is not specified. Volkswagen, while affected by the same headwinds in the Chinese market, did not experience a similar slump in its share price due to specific profit warnings. However, all three German premium manufacturers are grappling with declining brand values, with only Porsche bucking the trend.
Mercedes-Benz faced substantial sales challenges in the last quarter, with sales dropping by 12 percent in both China and the US. Meanwhile, Volkswagen's shares are under selling pressure, losing over two percent and nearing their three-month low. Despite this, investors are advised not to group Volkswagen shares with BMW and Mercedes-Benz, as Volkswagen's strong position in compact, mid-size cars, and electric vehicles could lead to better performance in the coming quarters.
BMW's profit forecast downgrade, along with the sales struggles of both BMW and Mercedes-Benz, has had a significant impact on their share prices and brand values. While Volkswagen is also feeling the pressure, its strong position in certain segments could lead to improved performance in the future.
