’2009 – another difficult year’ says BMW

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’.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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