BMW Group expects tough 2020

BMW Group’s Munich head office (above) faces challenges this year, like its competitors. Photo: BMW Group

BMW Group has reported a significant slow down in quarter one global deliveries, with a 21 per cent fall to 477,111 cars delivered. 

BMW CEO Olivier Zipse reported on Wednesday that BMW “must watch liquidity and keep a tight rein on inventory levels” 

Zipse said that BMW Group expects a difficult 2020 for car sales and also warns of further margin pressure if long recessions develop in key world markets due to the Covid-19 pandemic.

BMW is pushing more plug-in hybrids such as the X5 (above). Photo: BMW Group

BMW has pressure in Europe to introduce more petrol hybrids and full electric models, such as the Mini electric, to bring down emission levels, with tougher emissions protocols continuing to be implemented.  

Buyer behaviour around the world and in Europe is strongly favouring SUVS, which make up 44 per cent of BMW sales. This is making it challenging for BMW to move at the rate, on lower emissions levels, in order to bring down the emissions average of the portfolio.

It’s a problem shared with many European competitors as well.