In a statement on Tuesday, BMW clarified that the profit margin on car sales for the full year is expected to be 1-3 percent, down from a previous forecast of 6 percent.
The company cited declining demand in its largest market, China, and increased competition from domestic brands. In addition, the war has hit energy prices and reduced purchasing power.
BMW will expand the previously launched savings program to adapt to a “drastic decline in market conditions.” It is unclear whether this will mean staff cuts.
The program will incur one-time costs during the second half of the year.
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