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Earlier this month BMW <BMWG.DE> lowered its profit expectations
for its automotive and motorcycles divisions, citing
worse-than-expected demand which would deteriorate in the second
quarter.
"There is at least a glimmer of hope coming from China," Chief
Executive Oliver Zipse said in a speech held at the company's
annual general meeting, which is being held in a virtual format
for the first time.
"Unfortunately, our biggest single market is only of limited use
as a blueprint for development in other markets."
After China sales fell 88% in February 2020, deliveries rose 14%
in April, thanks to pent-up demand in a market where vehicle
ownership is relatively low by global standards, BMW said.
"Economies in Europe have been affected to varying degrees by
the pandemic, for instance. Demand for cars in countries like
Spain, Italy and the UK will probably be very slow to recover.
The same applies to the US," Zipse said.
The Munich-based manufacturer is gradually ramping up production
and last week re-opened its factory in Goodwood, England, a
plant in Spartanburg, United States and a motorcycle assembly
factory in Berlin.
This week BMW is re-starting production in Dingolfing, Bavaria
and next Monday the carmaker will resume work at its German
plants in Munich, Regensburg and Leipzig, as well as facilities
in Oxford, England, Rosslyn, South Africa and San Luis Potosí in
Mexico, BMW said.
(Reporting by Edward Taylor; Editing by Michelle Martin)
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