BMW says the fact that it sold more smaller vehicles and fewer in the US hit its quarterly operating profit.
Customers are choosing smaller, less profitable offroaders. BMW’s volume model, the 5-series, is also at the end of its lifecycle and competing with a brand new Mercedes-Benz E-class.
More intense price competition in the United States and higher personnel expenses as staff numbers rose were additional factors, BMW said.
The German carmaker also warned increased spending to develop electric cars will have an effect on its bottom line.