BMW, the world's largest luxury car manufacturer, warned today that it is no longer immune from the global downturn:
'Business conditions for the automobile industry deteriorated sharply again in the second quarter due to further ongoing steep rises in oil and raw material prices, the weakness of the US dollar, the impact of the international financial crisis and a weaker US economy,' it told investors.
BMW is now planning to cut costs and reduce production. Both actions will have a major impact on chemical companies' sales and profit. Most worryingly, BMW Chairman Norbert Reithofer also believes '2009 will be another difficult year, full of challenges'.