BMW

Ticker BMW

Today's data summary

Market open
% change
+1.28%
Price Euros
76.20
Change
+0.96
As of 08:16 18 Oct 2018
Market cap. Euros
45,866.00 million
As of 08:17 18 Oct 2018

Latest updates

Trade war bites BMW

BBC Radio 5 live

BMW
Getty Images

In his speech to the United Nations, President Donald Trump yesterday said that the US trade deficit with China is "just not acceptable".

China is no longer willing to talk.

And companies are now feeling the effects - such as German car-maker BMW.

Jane Sydenham investment director at Rathbones, tells Wake Up to Money: "BMW has been an incredibly reliable source of profits and margins and for the first time since 2009 they've had to report lower profit margins partly due to emissions charges, partly due to trade wars, partly due to warranties - there has been a whole series of things that has affected them.

"These are some of the real effects of the trade war."

Carmakers should fear cartel probe

Theo Leggett

BBC Business News Reporter

"This investigation could prove very costly for the carmakers concerned.

"If the Commission finds that there has been deliberate wrongdoing - and it is very important to point out it has not yet done so - they could face very heavy penalties. Fines can run into the hundreds of millions of euros. Even, occasionally, into the billions.

"Then there's the political backdrop. Since the scandal over emissions cheating at Volkswagen erupted three years ago, any hint that manufacturers may have been sabotaging efforts to produce cleaner cars has gone down very badly - especially in Germany.

"Car companies do talk to one another, and on a regular basis. Sometimes it's about developing technical standards, or improving safety. All of that's allowed - the question is where they draw the line between essential cooperation and anti-competitive behaviour.

"That's likely to be the focus of the Commission's inquiry. And for the moment, it is simply an inquiry.

Mini factory to close for a month post-Brexit

BMW Mini Cooper
Reuters

The Mini factory in Oxford will shut down for a month after Brexit at the end of March to minimise the risk of no deal disruption.

Owner BMW said its summer maintenance shutdown had been brought forward to 1 April to reduce any "possible short-term parts-supply disruption".

"While we believe this worst case scenario is an unlikely outcome, we have to plan for it," BMW said.

The German firm remained "committed to our operations in Britain".