MILAN, Nov. 4 (Class Editori) - BMW has experienced a third quarter with sales increasing by 31% in China. The Chinese automotive market continues to contribute to the positive results of the European companies. The rebound in demand (sales at +7% in Europe as well) has helped the manufacturer from Monaco to record a profit before taxes of €2.5 billion in the period, on the increase compared to 2.25 billion recorded in the same quarter of last year.
Two weeks ago, BMW had disclosed it had over €3 billion of free cash flow in the third quarter of the year, by strongly outdoing the market expectations. In the first nine months of 2020, global sales are still 12.5% lower compared to the same period of 2019. Indeed, the automotive company "continues to believe that demand in all key markets will strongly decrease due to the coronavirus pandemic."
Already in the last weeks, Daimler and then Volkswagen had underlined the People's Republic of China contribution to their results. Daimler has stated that its gross profits have increased by almost one fifth in the third quarter to almost €2.2 billion, thanks to a strong reboundinsales of its Mercedes-Benz cars in China.
Sport premium vehicles, Audi and Porsche branded, due to the comeback of the Asian country to an almost normal condition, have experienced an increase by 3% in the third quarter, by compensating the previous -1.1% in new cars' delivery. In this way, after six months seriously affected by the COVID-19 emergency, Volkswagen has returned to earn profits.
In the assessment, the positive impact of the costs' containment measure implemented at the beginning of the emergency should not be overlooked. This measure has helped to improve net liquidity up to €24.8 billion, compared to 18.7 billion recorded in June, according to a press release broadcasted yesterday by Volkswagen.
At the end of October, BMW has also signed a strategic partnership with Alibaba in order to work on the digitalisation of the German automotive company's processes in China. According to a memorandum of understanding, the two companies will launch the first sale activities and online services by involving premium car brands' dealers.
(Source: Class Editori)
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