FRANKFURT (Reuters) - BMW (BMWG.DE) plans to stick to a goal for 8 to 10 percent return on sales at its automotive division, even with the arrival of less profitable electric cars, its chief executive said at the Frankfurt auto show on Tuesday.
“We’re sticking to our 8 to 10 percent goal and maintain this range, even when electric mobility becomes more widespread,” Harald Krueger told journalists.
Rival Daimler (DAIGn.DE) on Monday set a new target of saving 4 billion euros ($4.8 billion) by 2025 to help offset the lower profitability of electric cars, which it said at first may only earn half the margin of equivalent vehicles with combustion engines.
Krueger also said that the share of BMW’s sales in Europe accounted for by diesel engines had dropped to 69.3 percent from 74.3 percent, but that he saw no need for writedowns on the value of the cars in its leasing fleet.
Reporting by Edward Taylor; Writing by Victoria Bryan; Editing by Maria Sheahan