Soon after submitting the report card, BMW ushered in new challenges.
According to foreign media reports, affected by the current epidemic, BMW's SUV plant in South Carolina will suspend production on April 3, and is expected to suspend production for at least two weeks. It is understood that the plant is the largest vehicle assembly plant in the BMW Group worldwide, and it is also one of the last auto plant factories in the United States. After the expansion, the plant has an annual production capacity of 450,000 vehicles and employs 11,000 workers.
In fact, because the plant mainly imports key components such as engines and transmissions from Europe, the European parts and vehicle production lines have been suspended before that. The suspension also means that some domestic BMW imported models scheduled for production will be affected. BMW X4, X5, X6, X7 and other SUV models will be produced by the plant. Among them, the BMW X5 has the largest impact, and in 2019, this model ranked first in the factory with 161,096 units.
Previously, BMW also announced the suspension of production in Europe and South Africa. The suspension is expected to continue until April 19, and the two MINI factories in the United Kingdom also announced the closure of the plant, which was upgraded from two weeks to four weeks until April 17. On March 18, BMW released its 2019 financial report. According to data, in 2019, the BMW Group's annual sales for the first time exceeded 2.53 million vehicles, and its total annual revenue also exceeded 100 billion for the first time to reach 104.21 billion euros, a year-on-year increase of 7.6%. set objectives.
However, affected by the global epidemic, BMW's sales in the first quarter of this year will also decline to a certain extent. BMW Group CEO Zipzer has predicted that BMW's delivery in all major markets will decline in 2020, and the Group's pre-tax profit is also expected to be significantly lower than 2019, and will fall for the third consecutive year, to between 2% and 4%. In comparison, last year's profit margin was 6.8%.
BMW said in a statement: "The new coronavirus epidemic has had a significant impact on global car demand. Therefore, we have adopted a flexible approach and adjusted our production accordingly."
For the entire automotive industry, the challenges of the epidemic are increasing. Daimler, Hyundai, Honda, Toyota, and Volkswagen also recently announced that they have suspended production at most plants in the United States. GM, Ford and Fiat Chrysler (FCA) have also agreed to close the plants until the end of March.