German luxury car maker expects "BMW"Will pay an additional 1 billion euros ($ 1.1 billion) in the next year as a result of the war of President Donald Trump and the rise in raw material prices and exchange rate fluctuations.
The Bloomberg news agency reported that "BMW" based in the City of Munich The German company has set its first estimate for next year a set of difficulties that will negatively affect its profits, while performance will improve the models with a higher profit margin towards the end of next year only.
"The strategic target for our profits ranges from 8% to 10% and it has not changed," said Nicholas Peter, CFO of the German company in a speech to investors. "Our achievement of this goal in 2019 will depend on many different factors."
According to the company's estimates, trade between China and the United States will cost about 500 million euros, while exchange rates and raw material prices will continue to have a negative impact, according to Peter. The impact of these two factors is expected to increase by more than 500 million euros.
The BMW chief executive added that BMW had to add more technology to its cars because of the tougher environmental regulations, which raised the costs of producing the car, without necessarily being borne by the consumer, which would negatively affect the margin.
To offset rising costs and to maintain investments in new technologies, BMW has reduced the number of engine classes available in each model and is looking for other ways to control costs.