(Bloomberg) — BMW AG lowered its profit outlook for the year and warned it will have difficulty generating cash as the German carmaker said the fallout from the coronavirus pandemic is lasting longer than expected.
BMW now sees an earnings before interest and taxes margin for the automotive segment of between 0% and 3%, from 2% to 4% earlier. The company no longer expects to achieve positive free cash flow from car sales this year, Chief Financial Officer Nicolas Peter said Wednesday.
BMW is bracing for tough times after carmakers from Ford Motor Co. to Daimler AG forecast falling profit in the past days because of the pandemic. The crisis is hitting BMW and its peers at a sensitive time — manufacturers are ramping up spending on electric vehicles to meet tougher emissions regulations and need profits from conventional cars to fund those investments.
“The situation remains serious,” Chief Executive