BMW profitability hits six-year low as Mercedes speeds ahead
BMW now has to spend money on redesigning a lineup at its main brand that has been largely static for years
Munich — BMW reported its weakest profitability since 2010, capping a negative year for CEO Harald Krueger after losing the luxury-car crown to arch-rival Mercedes-Benz. Amid higher spending on electric-car and autonomous-driving technologies, BMW’s automotive profit margin narrowed to 8.9% in 2016 from 9.2% a year earlier, according to a statement on Thursday. The shares fell as much as 4.2%, the most in four months. "We are fully focused on implementing our strategy," which involves pivoting to self-driving, electric vehicles, Kruger said in the statement. "From 2019 onwards, we will be firmly embedding all-electric, battery-powered mobility in our core brands." BMW, lacking the financial heft of rivals backed by a larger parent, is focusing its resources on innovating for the future instead of chasing short-term sales volume. The Munich-based car maker plans to launch the self-driving, electric iNext model in 2021 in a bid to regain its edge as an automotive leader. To manage ris...
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