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BMW Anticipates Improved Profitability with Stabilizing Supply Chain

Industry: Vehicle Manufacturing
Current: Company Performance

BMW witnessed supply shortage for semiconductor materials resulting in rescheduling of production plans
BMW anticipates that a supply shortage will hinder the company's operations until the middle of 2023
Europe is lagging the United States in its goal of becoming more self-sufficient in semiconductor supply due to a lack of concrete actions

BMW Predicts Improved Sales Performance in 2023

Due to an ongoing supply shortage of semiconductor products, BMW reduced its operating margin forecast for the first half of 2022 from 8-10% to 7-9%. The company witnessed a smaller drop in sales than anticipated due to a recovery in the Chinese market. However, due to unstable supply chain situations in Europe, BMW is hesitant to comment on next year's sales forecast.

Automobile Industry Suffered Significant Losses Due to the Ongoing Semiconductor Shortage

Numerous variables, such as the global pandemic, the state of the economy, and Russia's invasion of Ukraine, contributed to the imbalance in the demand and supply of semiconductor components. The battle between the constantly expanding demand for auto parts and materials and the constrained supply of semiconductor products will undoubtedly be uphill in 2022.

However, with the stabilization of the China pandemic situation, automakers expect to make up for losses caused by chip scarcity by the end of 2023.

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