BMW reports lower Q3 earnings as China woes mount

German carmaker BMW reported a nearly 15% drop in third-quarter net profit on Wednesday, as competition from China shakes the global car industry.

Net profit for the third quarter fell to 1.45 billion euros ($1.61 billion), while sales fell nearly 6% to 30.45 billion euros, BMW said.

The main cause of the decline was BMW's poor business in China. Although the company sold more cars in the US and Europe compared to the same period last year, this could only partially offset the decline in China.

BMW's car deliveries in China, which were already at their lowest level since 2017 last year, fell 24.8% in the quarter and consequently dragged global deliveries down by 6.3.

CEO Milan Nedeljkovic said his company would "specifically intensify and accelerate structural measures."

BMW on Tuesday also lowered its outlook for the current year, citing the faster-than-planned implementation of restructuring measures that includes 8,000 layoffs in its home market.

German carmakers have been struggling to compete with their Chinese counterparts in the electric vehicle market, resulting in cost-cutting measures.

Volkswagen, the world's second-largest carmaker, is battling mounting competition from falling demand in its core Chinese market.

BMW, and its industry heavyweight peers, Volkswagen and Mercedes-Benz, have announced plans to scale back production and reduce costs.

The Volkswagen Group posted its worst quarterly results in more than a decade earlier this October.

It is looking to cut about 15% of its workforce worldwide, or 100,000 jobs, by the end of the decade. BMW has announced that it will cut up to 8,000 jobs — about 5% of its workforce — by the end of 2027.

On the other hand, German auto parts supplier Schaeffler announced on Tuesday that it planned to cut almost 3,500 jobs and close five sites in Europe, by 2028.

According to the company statement, three-fourths of the 3,460 job cuts and four of the five site closures will be in Germany.

German automotive supplier Bosch, the world's biggest, announced last year that it would cut 13,000 jobs, mostly in its auto division.