BMW loses 212 million euros in second quarter

FRANKFURT: German automaker BMW AG lost 212 million euros (USD 250 million) in the second quarter as the coronavirus pandemic shutdowns cut vehicle sales by a quarter in the April-June period.

It saw a rebound in China, its biggest market.The net loss compared to a profit of 1.48 billion euros in the same period a year ago.

The company has since restarted all its factories and CEO Oliver Zipse said he was "cautiously optimistic" about the second half of the year, predicting the automaker would still make some profit selling cars.

"Our swift responsiveness and consistent management strategy enabled us to limit the impact of the corona pandemic" during the first half of the year, he said. IT said a positive trend was emerging in China, which was hit earlier by the virus but reopened earlier.

Sales there rose 17% in the second quarter compared to the year-earlier quarter.Sales fell 25% to 485,500 cars under the BMW, Mini and Rolls-Royce brands. Revenues fell 10% to 43.2 billion euros.

The company stayed with its financial forecast for the full year, saying that its worldwide auto deliveries would be "significantly lower" than last year's, and that its operating margin in its automobile business would be between zero and 3%.

The company had to halt production at its BMW Brilliance Automotive Ltd joint venture in Shenyang from the end of January to midFebruary, while European plants and its manufacturing facility in Spartanburg, South Carolina closed down from mid-March to midMay.