BMW profits dented by electric vehicle investment costs

Frankfurt am Main: German high-end carmaker BMW on Thursday reported slumping second quarter profits, with pricey investment in electric cars sapping the bottom line, but it remained confident of hitting targets. Net profit at BMW fell 28.7 per cent compared with a year earlier in the April-June period to 1.5 billion euros ($1.7 billion). Chief executive Harald Krueger said the Munich-based group was investing in development of all-electric, hybrid and fuel cell vehicles, as well as upgrading traditional internal combustion engines. BMW reported increased demand for its i3 compact car and pointed to five all-electric models slated for release over the coming two years. An all-electric variant of the Mini is set to begin rolling off its Oxford, UK production line in November. The broad development front meant “substantial upfront expenditure was again necessary,” BMW said, amounting to 1.4 billion euros over the three months. Sales increased 2.9 per cent, to 25.7 billion euros, but operating, or underlying profit fell 28.4 per cent, to 2.0 billion euros. — AFP