Delhi Delhi. German car manufacturer BMW CEO Oliver Jipse has said that the growing trade struggle between the US, Europe and China will lose about 1 billion euros ($ 1.1 billion) this year. This has happened at a time when the BMW and other European car manufacturers are ready for the impact of tariffs imposed on vehicles imported by US President Donald Trump.
Apart from Europe, tariffs imposed by the US will also affect the cars made in Mexico and Canada. BMW has a plant in Mexico's San Luis Potosi, which exports to the US. Although Donald Trump has postponed tariffs for companies that comply with USMCA trade agreement, BMW is left behind in terms of local material rules.
Despite this, Jipse's approach is more optimistic. A report in Bloomberg quoted him as saying, “We don't think all these tariffs will last for a very long time, although some of them may last for a long time.”
However, profit margin will be affected. The long -term target of BMW was to keep more than eight percent returns, but now it expects a margin between five and seven percent this year. He said that BMW is still “quite safe” despite € 1 billion cost estimate.
However, BMW is also facing the European Union tariff on imported vehicles from China, along with the US tariff. It belongs to its mini brand that produces an electric car and an SUV there.
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