BMW says chip shortage, raw material prices to hit second half
By Nick Carey
Reuters
LONDON (Reuters) -BMW raised its profit forecast for 2021 on Tuesday after strong quarterly results, but said the global semiconductor chip shortage and rising raw materials prices would hurt its performance in the second half of the year.
BMW has so far been relatively less affected by the global chip shortage that some of its peers across the auto industry, which has been attributed to its strong relations with its supplier base.
Its German rivals Volkswagen AG and Daimler AG have both warned the chip shortage would dent their results in the second half, and Daimler has said the crisis could drag on into 2022.
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BMW (BMWG.DE) remains on course to meet its profit targets for 2021 despite rising raw material costs, though the global chip shortage will worsen and may hit production in the second quarter, the German carmaker said on Friday.
BMW confirms its 2021 targets despite worsening chip shortages
By Nick Carey
Reuters
LONDON (Reuters) -BMW remains on course to meet its profit targets for 2021 despite rising raw material costs, though the global chip shortage will worsen and may hit production in the second quarter, the German carmaker said on Friday.
Most of the auto industry has been hit by a global semiconductor chip shortage, forcing many assembly plants to shut, driving down inventories and pushing up prices for both new and used vehicles. We cannot assume that we will emerge from the second quarter unscathed, Chief Executive Officer Oliver Zipse said.
Sales were also up by double-digit percentages in most of Europe and the U.S.
May 7th, 2021
In this Sept. 27, 2020 file photo, visitors gather near a BMW M8 model on display at the Auto China 2020 show in Beijing, China. Booming sales in China helped propel German luxury carmaker BMW to stronger profits in the first three months of the year even as its home market Germany trailed the ongoing recovery in global car markets from the worst of the pandemic shutdowns.
AP Photo/Andy Wong, File
FRANKFURT, Germany (AP) Booming sales in China helped propel German luxury carmaker BMW to stronger profits in the first three months of the year even as its home market Germany trailed the ongoing recovery in global car markets from the worst of the pandemic shutdowns.