BMW Group to recognise a provision with respect to EU antitrust proceedings

Munich. In connection with the ongoing antitrust
proceedings, the European Commission today informed the BMW Group
about a “Statement of Objections”. The EU Commission is investigating
whether German automobile manufacturers cooperated in technical
working groups to restrict competition in development and rollout of
emission-reduction technologies.

 

The BMW Group will contest the EU Commission’s allegations with all
legal means if necessary.

 

The Statement of Objections leads the BMW Group to believe that it is
probable (“more likely than not”) that the EU Commission will issue a
significant fine. According to the International Financial Reporting
Standards, this results in an obligation to recognise a provision.

 

Therefore, following its review of the Statement of Objections, the
BMW Group will recognise a provision, which is likely to exceed €1
billion. This effect will negatively impact the financial results in
the first quarter of 2019. The company’s review of the Statement of
Objections and the inspection of files will take some time. As a
result, a final evaluation of the financial impact is currently not possible.

 

Accordingly, the EBIT margin in the Automotive Segment for the
current financial year is expected to be 1-1.5 percentage points below
the previous target range of 6-8%.

 

The guidance of the Group profit before tax for the current financial
year remains unchanged (significant decrease compared to the previous year).

 

 

 

 

For queries, please contact:

 

Corporate Communications

 

Michael Rebstock, Corporate Communications

Telephone: +49 89 382 20470, Michael.Rebstock@bmwgroup.com

 

Max-Morten Borgmann, Corporate Communications

Telephone: +49 89 382-24118, Max-Morten.Borgmann@bmwgroup.com

 

Mathias Schmidt, Head of Corporate and Culture Communications

Telephone: +49 89 382-24544, Mathias.M.Schmidt@bmw.de

 

Internet: www.press.bmwgroup.com

E-mail: presse@bmwgroup.com

 

 

 

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 30 production and assembly
facilities in 14 countries; the company has a global sales network in
more than 140 countries.

In 2018, the BMW Group sold over 2,490,000 passenger vehicles and
more than 165,000 motorcycles worldwide. The profit before tax in the
financial year 2018 was € 9.815 billion on revenues amounting to
€ 97.480 billion. As of 31 December 2018, the BMW Group had a
workforce of 134,682 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.