FRANKFURT -- BMW said it will step up cost cutting in anticipation of a difficult year after the automaker reported a 7.9 percent fall in 2018 operating profit due to higher investments in electric cars and currency headwinds.
"We expect strong headwinds to continue to effect the entire sector in 2019," Chief Financial Officer Nicolas Peter said in a statement. "In view of current developments, we intend to further broaden and significantly intensify these (cost-cutting) efforts," he said
BMW's 2018 earnings before interest and taxes fell to 9.12 billion euros ($10.33 billion).
BMW said it will reduce the number of vehicle variants to reduce complexity including axing a successor to the 3-series Gran Turismo "despite a good level of demand."
The company said its automotive division margin fell to 7.2 percent from 9.2 percent a year earlier, as investments in electric cars and a price war triggered by new emissions tests weighed on profit.
