BMW expects slight growth in 2023 and cuts gas consumption in Germany by 15%

BERLIN (Reuters) – BMW expects to reach the upper end of its 7-9% target margin for the auto business, and also expects slight sales growth in 2020, BMW Chief Financial Officer Nicholas Peter said at a roundtable meeting on Monday. 2023.

The CFO said demand was recovering in China in the third quarter after shutdowns plagued the first half, describing it as a “volatile” year in the biggest sales market.

In Europe, order books were still full but demand was weak in Germany and the UK and stronger in France, Spain and Italy.

Peter added that the luxury carmaker expects to hit its target of 10% all-electric sales this year at around 240,000 to 245,000 vehicles and could see that figure rise to around 400,000 next year.

Asked how BMW would respond to gas shortages in Europe, Peter said it had reduced its gas consumption in Germany and Austria by 15% and predicted that it could cut it further.

“The gas issue will not have any direct impact on us this year,” Peter said, adding that they had not seen any production cuts in their network of suppliers so far.

Volkswagen (ETR 🙂 and Mercedes-Benz outlined contingency plans last week if their supplier networks fail to deliver parts, including increased orders from suppliers outside European countries hardest hit by the gas crisis.

Peter did not provide details on whether BMW is doing the same, but said it has developed a much closer relationship with its supplier network since the chips shortage.