BMW Group’s Q2 report reveals continued profitability amid semiconductor shortage

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In a recent press release issued by the BMW Group, the company revealed that it enjoyed continued profitability and earnings in the second quarter of 2021 despite the shortage of semiconductors and other materials used in vehicle manufacturing.

“Our performance has benefited from strong customer demand during the first half of the year, enabling us to achieve significant growth. However, in light of a number of prevailing risks, including raw materials prices and a shortage of semiconductors, the second six-month period is likely to be more volatile for the BMW Group," said BMW AG Chairman of the Board of Management Oliver Zipse.

“Despite short-term challenges, we remain focused on the Group’s long-term strategy of leveraging our great innovative strength and sustainable profitability as the basis for successfully shaping the transformation of our industry. In doing so, we are committed to finding the best technological solutions to drive forward the progress of digital connectivity and sustainable mobility,” he adds.

In the second quarter of 2021, the BMW Group completed 702,441 units, 44.7 percent more than last year’s 485,464 Q2 sales. From the 702,441 units the BMW Group delivered, 617,667 were from the BMW brand, 83,165 were from the Mini marque, and 1,609 came from Rolls-Royce.

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According to BMW Group, the deliveries of their electrified offerings reached 167 percent. The sustained high demand for BMW’s EVs provided strong momentum for growth. Between January and June 2021, 153,243 all-electric vehicles and plug-in hybrids were delivered to customers compared to last year’s first and second-quarter sales of 61,652 units.

Total revenues for Q2 are at €28,582 million 43.1 percent greater than last year’s €19,973 million. The majority of their profit comes from automotive sales (24,983) while motorcycles (868) and the company’s other services (8,200) help boost the company’s profit.

However, the looming semiconductor shortage still poses a threat to the company’s profits. Nevertheless, the BMW Group expects business to develop positively for 2021.

“The forecast is based on the assumption that neither the coronavirus pandemic nor the semiconductor supply situation will worsen significantly and that prices on international raw materials markets remain stable. We were largely able to compensate for the challenging semiconductor supply problems arising in the first six months through the sheer hard work of our purchasing, production, and sales staff,” said BMW AG Member of the Board of Management for Finance Dr. Nicolas Peter.

“However, the longer the supply bottlenecks last, the more tense the situation is likely to become. We expect production restrictions to continue in the second half of the year and hence a corresponding impact on sales volumes,” he added.

Photos from the BMW Group

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