BMW stock will now come with some additional, but still expensive luggage.
BMW says that with the ongoing antitrust proceedings – Death of the Diesel – European Commission’s Ongoing Antitrust Probe Opens Formal Investigation into Possible Collusion Between Audi, BMW, Daimler, Porsche And VW– will negatively impact the financial results in the first quarter of 2019.
The EU Statement of Objections “leads the BMW Group to believe that it is probable (“more likely than not”) that the EU Commission will issue a significant fine. According to the International Financial Reporting Standards, this results in an obligation to recognize a provision.”
The BMW Group provision will likely exceed €1 billion. The EBIT margin in the BMW Automotive Segment for the current financial year is expected to be 1-1.5 percentage points below the previous target range of 6-8%. The guidance of the Group profit before tax for the current financial year remains unchanged (significant decrease compared to the previous year).
Harald Krüger, Chairman of the Board of Management of BMW AG.
BMW review of the Statement of Objections and the inspection of files will take some time. As a result, a final evaluation of the financial impact is currently not possible. The BMW Group will contest the EU Commission’s allegations with all legal means if necessary.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
EU Antitrust Allegations to Hurt BMW Earnings – €1 Billion!
BMW stock will now come with some additional, but still expensive luggage.
BMW says that with the ongoing antitrust proceedings – Death of the Diesel – European Commission’s Ongoing Antitrust Probe Opens Formal Investigation into Possible Collusion Between Audi, BMW, Daimler, Porsche And VW– will negatively impact the financial results in the first quarter of 2019.
The EU Statement of Objections “leads the BMW Group to believe that it is probable (“more likely than not”) that the EU Commission will issue a significant fine. According to the International Financial Reporting Standards, this results in an obligation to recognize a provision.”
The BMW Group provision will likely exceed €1 billion. The EBIT margin in the BMW Automotive Segment for the current financial year is expected to be 1-1.5 percentage points below the previous target range of 6-8%. The guidance of the Group profit before tax for the current financial year remains unchanged (significant decrease compared to the previous year).
Harald Krüger, Chairman of the Board of Management of BMW AG.
BMW review of the Statement of Objections and the inspection of files will take some time. As a result, a final evaluation of the financial impact is currently not possible. The BMW Group will contest the EU Commission’s allegations with all legal means if necessary.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.