BMW cut its earnings forecast for this year in a profit warning made on Tuesday, citing the weak Chinese car market and the impact of the Iran war.
The Bavarian carmaker did not provide figures but said it now sees a "significant" drop in pre-tax profit, whereas previously it predicted a moderate decline, a statement showed.
"The impact of the conflict in the Middle East on our global business extends beyond our original assumptions," the company said in the statement. High energy prices are weighing on the company's cost structures and "the lack of stability due to the conflict is negatively impacting consumer sentiment across markets around the world."
BMW's management board now also expects the number of cars delivered to decline. It previously expected deliveries to remain unchanged.
BMW's top management now wants to speed up savings measures through further, unspecified "structural and efficiency measures." The cost-cutting is intended to have positive effects in the medium term, but will weigh on earnings in the second half of the year.
In China, car sales figures have collapsed, a development not limited to BMW. According to the latest data from the China Passenger Car Association (CPCA), sales fell by almost 20% year-on-year between January and May.
