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BMW Q2 results hit by rising costs of making greener vehicles

August 1, 2019

Via: Automotive News

FRANKFURT — BMW stuck to its outlook even as second-quarter earnings fell 20 percent, hit by currency headwinds and the rising cost of manufacturing electric and hybrid cars to help the automaker meet stricter emissions limits.

The company said its earnings before interest and taxes (EBIT) fell to 2.2 billion euros ($2.4 billion) in the quarter as stricter EU CO2 legislation that starts to take effect next year forces automakers to invest to build lower-emissions vehicles.

Investments in property, plants and equipment rose 39 percent in the quarter as BMW retooled factories to build new models and more flexible production lines to make both electric and combustion-engine vehicles, the carmaker said.

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