BERLIN, July 31 (Reuters) - German carmaker BMW
maintained its full-year guidance on Thursday, holding
strong against the threat of U.S. tariffs as the company's large
manufacturing presence in the country gives it an edge on
competitors.
European carmakers are still digesting a new 15% tariff
agreed between the European Union and U.S. President Donald
Trump, which is lower than the current rate but still poses a
major obstacle to their export-focused business.
Of the deal, BMW said it assumed negotiations were ongoing,
adding that its forecast included mitigating measures in
response to increased tariffs.
In 2025, the group expects a tariff-related impact of around
1.25 percentage points on its automotive segment's profit
margin, the company said. In the first half of the year, the
impact was some 1.5 points.
In the second quarter, the EBIT margin in the segment came
in at 5.4%, just missing analysts' forecast for 5.5% in a
company-provided poll, but within its 2025 target range of 5.0%
to 7.0%.
BMW's results come after peers Volkswagen and
Mercedes-Benz reported hefty blows to their earnings
and cut their outlooks.
BMW, whose biggest plant is in the United States and is the
country's top auto exporter by value, has been more upbeat.
"Our footprint in the U.S. is helping us limit the
impact of tariffs," CFO Walter Mertl said in a statement.