BMW Recorded More Than Triple In Its Third Quarter Profits

BMW more than tripled its third-quarter profit, the company said on Wednesday, a rare sign of hope for the country’s struggling auto industry.

Net profit was about 1.7 billion euros ($1.95 billion) between July and September, compared with 476 million euros in the same quarter last year, when BMW struggled with brake problems.

“In the third quarter, we once again proved that our business model is robust and resilient,” said CEO Oliver Zipse.

Global sales were driven mainly by BMW M models and electrified vehicles, and the company remains “fully on track” to meet the European Union’s 2025 CO₂ emissions targets, Zipse said.

Meanwhile, BMW, which also owns MINI and Rolls-Royce, said it expects further improvement in sales of the iX3 next year, after the reception for the first model in its new electric vehicle (EV) line-up was “extremely positive.”

For now, the iX3 is only available in Europe.

BMW posted a net profit of 5.7 billion euros in the first nine months, outperforming its German rivals. However, competition in China and new US tariffs have prompted the brand to lower its full-year forecast slightly.

By the end of September, Mercedes had earned 3.9 billion euros, while Volkswagen’s profit fell to 3.4 billion euros in the nine months.

Industry expert Ferdinand Dudenhofer said that thanks to BMW’s “stable long-term strategy,” the carmaker is in a much better position than other German manufacturers.

“Mercedes misjudged the market by focusing too much on luxury, while Porsche put too much emphasis on electric mobility too quickly,” he said. “Both now have to give up, and that’s costing sales and money.”

While things are starting to improve at Audi, the company is still struggling with the fallout from the diesel emissions scandal that broke in 2015, Dudenhofer said.

Meanwhile, Volkswagen, which owns Audi and Porsche, is “busy with job cuts,” the expert added.

But according to Dudenhofer, there are areas where BMW also needs to improve, noting that the company is boosting sales in Germany by giving discounts to customers.

He highlighted the need for the automaker to enhance its performance in the Chinese market to stay competitive, noting that Audi and Volkswagen will produce models specifically for local pricing.

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