BMW, the world's largest luxury car manufacturer and owner of Rolls Royce motors, today abandoned its August forecast of record auto sales and a 4% operating margin for 2008.
CEO, Norbert Reithofer, was in downbeat mood, saying that "the financial crisis is by no means behind us yet, particularly its impact on the real economy in 2009''. BMW is cutting production, and increasing its provisions from €695m to €1.04bn, as bad debts are rising and resale values for leased vehicles are falling.
Rolls Royce prices are usually very robust in the used car market, only falling during severe recessions. Their slide suggests Reithofer's concern about the outlook for 2009 is well-founded.