As the global economy is going through a period of recovery from the pandemic, it has been aimed the BMW to target its operating margin before the pandemic took over the world, but while saying that at the same time the big investors of electric cars in the industry mean that the respective automakers will have to make an effort for the simplification of its portfolio of vehicles. This has been reported by the finance chief at BMW to Reuters. It has further been reported by Nicholas Peters that the orders received by the luxury car company had fallen quite a lot and that is all because of the recent lockdowns which came with the spread of the virus, but he further added that if in the middle of the month of February the activity tends to start again, then the company will be able to successfully deliver its first quarter in a very reasonable fashion. With improvements in the condition of the market, the German company and Brexit Deal carry the plan to increase its respective shares concerning the Chinese joint venture for the purpose of taking it to 75% from 50% in the year 2022. This should further play a key role in helping in the pushing of BMW back the position it enjoyed before the pandemic hit the world, with possessing an operating margin target going from 8% to a good 10%.
Peter further added in his statement to the media and said that the company is not referring to a time which is far away in the future, but in fact, it is such a goal which the company is aiming at achieving in the near future and that too in the most systematic manner. This was put forward by Nicholas Peter during an interview which was held at the Munich headquarters of BMW. The month in which the company will be publishing its margin for the year 2021 is March. A surge taking place in the sales of the premium cars in the country China, which carries the status of the largest market in the world, offered the much-required help for the business of BMW, it also resulted in the boost of the German rivals which is Daimler as well as Volkswagen, and it should be reporting an operating margin of between 2% and 3 percent in the year 2020, this was also put forward by Peter.
The practice of changing the respective car line ups from petrol to diesel and then to electric cars in order to meet the respective target of emission in both Europe and China, not leaving behind the competition with the electric carmaker Tesla, is quite expensive, and also plays a role of the driving factor while talking about the recent merger between Fiat Chrysler and PSA for the formation of Stellantis, which carries the status of the fourth largest car market in the world.