FRANKFURT – German carmaker BMW reported solid profit last week despite US tariffs and tough competition in China, delivering a far better result than the heavy falls reported by rivals Volkswagen Group and Mercedes-Benz.

While Volkswagen saw profit plunge over 40% and said it would cut thousands of jobs in coming years, BMW reported a net profit of 7.45 billion euros (US$8.6 billion) for 2025, a fall of just three percent on the prior year.

Looking ahead, BMW finance chief Walter Mertl said he expected transatlantic tariff wars to ease, helping the firm’s results.

Mertl said he expected that this year “an agreement between the USA and Europe will be finalised, allowing us to import at 0%”.

Munich-based BMW has its largest plant in South Carolina and is the United States’ largest car exporter.

This means it would stand to profit from the implementation of an EU-US deal unveiled last July, which would reduce the EU rate on US cars to zero.

Mertl also said he expects “positive agreements between the US, Mexico, Canada and other countries” on trade.

All tariffs cost the company roughly 1.75 billion euros in total over the past year, BMW said, reducing the margin in its automotive business by 1.5 percentage points on sales of 117.6 billion euros.

The firm pays duties on some imports into the US, including certain car parts, and the European Union levies tariffs on Chinese-made electric cars, hitting BMW’s electric Mini.

BMW sees duties hitting its automotive margin by 1.25 percentage points in 2026, down from 1.5 percentage points in 2025.

But the company still forecasts a moderate overall decline in earnings before tax, hit by currency effects, raw material costs, and the burden of reshaping its business in China amid fierce competition.

BMW shares were down almost 2% at market open but later recovered to edge into the green. -Nampa/AFP