(Bloomberg) — BMW AG said operating returns for its automotive business are expected decline this year, as the fallout from the war in Ukraine impacts supply chains and weighs on the global economy.
Returns from automaking will be between 7% and 9%, the company said Wednesday. That’s down from more than 10% in 2021.
The carmaker said it expects auto deliveries to remain at 2021 levels of about 2.5 million as the ongoing violence in Ukraine hurts production. In the absence of the war, BMW said it would have targeted 8% to 10% profitability for its automotive business.
The company also said it doesn’t see the semiconductor shortage improving until the second half of the year, a problem that has idled production lines for the industry across the globe.
BMW said it expects 15 fully electric models to be in production this year, including the rollout of the new i7 sedan. The company also said it is developing new battery technology and could deliver early on its target of having fully battery-powered vehicles making up half its global sales by 2030.
BMW previously said that it expects sales of fully electric vehicles to double in 2022, as the company’s i4 couipe and iX SUV go on sale in major markets.
Overall earnings for BMW, including its finance and motorcycle segments, should increase significantly this year, the company said, helped by the full consolidation of its Chinese BMW Brilliance joint venture.
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