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German automaker BMW said Wednesday that profits in 2019 will be "well below" last year's and it will cut 12 billion euros ($13.6 billion) in costs by the end of 2022 to offset spending on new technology.
The company said profits would be eroded by higher raw materials prices, the costs of compliance with tougher emissions requirements and unfavorable shifts in currency exchange rates.
Automaker - Uncertainty - Trade - Conflicts - Tariffs
The Munich-based automaker also faces increased uncertainty due to international trade conflicts that could lead to higher tariffs.
The company forecast a profit margin of 6 to 8 percent for its automotive business, short of the long-term strategic target of 8 to 10 percent, which it said still "remains the ambition" for the company given "a stable business environment."
BMW - Plans - Layoffs - Cost - Saving
BMW said it had no plans for layoffs even as it outlined cost saving measures that include dropping half of its engine variants as it seeks to reduce product complexity. The BMW, MINI and Rolls-Royce brands are to get a single sales division.
Chief Financial Officer Nicolas Peter said that given the headwinds to earnings, "we began to introduce countermeasures at an early stage and have taken a number of far-reaching decisions."
Company - Measures - Level
The company said the measures were needed "to offset the ongoing high level of...
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