BMWYY
📉 Increased tariffs raise BMW’s prices, potentially decreasing sales in the U.S.
💰 BMW may need to reduce prices to offset tariffs, impacting profit margins.
🌍 The company faces challenges in maintaining competitiveness in the U.S. market.
@CobasAssetManagement:
“A German car manufacturer like BMW, which exports to the United States, usually sells 100,000 vehicles a year at an average price of $50,000. A 20% tariff will increase the average price to $60,000 for American buyers, and BMW will almost certainly sell fewer cars. BMW has the alternative of reducing its prices to compensate for the effect of the tariff, if it has the margin to do so. This way, it could lose fewer sales, but it will lose profits by having reduced its margin.”
Watch the exact part of the video where Cobas Asset Management talks about BMW here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on BMW (BMWYY) at the following link. BMWYY stock.
