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Today β€” 14 March 2025Main stream

BMW's China problem isn't going away — and Trump's trade war may make things worse

14 March 2025 at 04:46
BMW
BMW's sales in China fell by 13% last year.

PEDRO PARDO/AFP via Getty Images

  • BMW is getting crushed in China as rivals like BYD squeeze out foreign carmakers.
  • The German giant is fighting to turn things around, but now has a brewing trade war to contend with.
  • The CEO said the trade conflict sparked by President Donald Trump could cost BMW up to $1 billion this year.

BMW is still getting crushed in China β€” and now has a brewing trade war to worry about too.

The German carmaker reported on Friday that net profits had collapsed by more than a third last year, and warned that 2025 is likely to be challenging thanks to the ongoing tariff face-off between the US, China, and Europe.

BMW stock fell as much as 4.5% on Friday. As with many of its European rivals, the main source of the automaker's woes is China.

Despite BMW Group's sales rising slightly in the US and Europe, they collapsed 13.4% in the world's largest car market last year.

BMW has found itself increasingly squeezed by China's insurgent local EV makers, who are taking market share from their foreign competitors with their high-tech, affordable electric vehicles.

Fellow German carmakers VW and Porsche have also reported double-digit sales drops in China, even as the likes of BYD and Xiaomi enjoy a sales surge.

BMW plans to roll out a new lineup of next-generation EVs, dubbed the "Neue Klasse," starting later this year in an attempt to boost sales.

It faces the additional headwinds of a brewing global trade war sparked by America's on-again-off-again tariffs on Canada and Mexico.

BMW CEO Oliver Zipse told Bloomberg the automaker expects trade conflicts between the US, China, and Europe to cost it about 1 billion euros ($1.1 billion) this year.

However, he expects much of the disruption to be short-lived. "We don't think that all these tariffs will last very long, though some of them might last longer," Zipse said.

Other European automakers are also sounding the alarm about President Donald Trump's tariff barrage. The boss of VW brand Skoda warned on Friday that US tariffs would raise costs, and could push Chinese carmakers to accelerate their expansion into Europe.

BMW did not immediately respond to a request for comment.

Read the original article on Business Insider

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Engadget Podcast: MacBook Air M4 review, Apple delays smarter Siri

It's both a great and bad week for Apple. In this episode, we dive into Devindra's review of the excellent M4-equipped MacBook Air (and briefly chat about the new Mac Studio). We also discuss Apple's surprise announcement that it's delaying its smarter, AI-infused Siri, which may not arrive until next year. Did Apple over-promise last year, or is it wise to hold off on advanced AI features until they're ready? After all, Apple doesn't want a fiasco like Microsoft's Recall announcement.

Listen below or subscribe on your podcast app of choice. If you've got suggestions or topics you'd like covered on the show, be sure to email us or drop a note in the comments! And be sure to check out our other podcast, Engadget News!

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Topics

  • The MacBook Air M4 refresh maintains Apple’s seat on the ultraportable throne – 1:40

  • …but the delay on a Siri upgrade could spell trouble long-term – 15:32

  • Xbox’s first handheld might not be made by Microsoft – 34:29

  • The White House turns into a Tesla dealership – 41:30

  • Meta attempts to block unflattering expose book already on sale – 45:52

  • Around Engadget: Ninja Swirl and Eero Pro 7 router reviews – 46:38

  • Working on – 49:21

  • Pop culture picks – 50:26

CreditsΒ 

Hosts: Devindra Hardawar and Cherlynn Low
Producer: Ben Ellman
Music: Dale North and Terrence O'Brien

This article originally appeared on Engadget at https://www.engadget.com/computing/engadget-podcast-macbook-air-m4-review-apple-delays-smarter-siri-113018766.html?src=rss

Β©

Β© Devindra Hardawar for Engadget

Apple MacBook Air M4
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