German car luxury brand BMW has managed to bounce back from the supply chain crisis of 2021 and reported to have generated a high net profit worth USD 13.8 billion in 2021, more than thrice the result of USD 4.2 billion it achieved in 2020 during the COVID-19 pandemic.
Oliver Zipse, the CEO of BMW, cited the recorded result as the outcome of their consistent strategy in delivering the right products at the right time. Moreover, BMW managed to tackle the supply chain crisis efficiently, while the other auto manufacturers faced a shortage of semiconductors.
Last year, BMW's worldwide deliveries increased by 8.4%, supplying more than 2.5 million vehicles. Simultaneously, the domestic German market decreased by 10.1%.
The luxury performance carmaker, in this context, stated that the market is lately more inclined towards luxury vehicles given the fact that general automobiles were in short supply during the semiconductor crisis. As a result, the BMW Group's operating margin increased from 2.7% in 2020 to 10.3% in 2021.
The company managed to sustain the fourth quarter despite bottlenecks in the supply chain. Moreover, the net profit increased by 34% to USD 2.5 billion.
Having survived the thrashes of the pandemic, BMW, like other automakers, is now facing new challenges caused by the Russian-Ukraine war. The ongoing conflict has led to a cut in supplies from the automotive part-makers in the country, further hampering factory operations for leading manufacturers including BMW.
Sources with relevant information stated that BMW has recalled at least one million vehicles, after continuously receiving complaints regarding overheating of engine compartments, which could further result in severe damage or engine fire. The affected vehicles will be fixed by the middle of this year through authorized dealerships.
Meanwhile, BMW has also announced to gradually resume its production next week at Munich and Dingolfing, which was temporarily halted due to supply chain woes given the Russian-Ukraine conflict.