BMW last week reported a 33 percent drop in its 2nd-quarter profits. But things are a little worse for BMW than they seem. CEO Norbert Reithofer said on Friday that the luxury German automaker will be increasing prices later this year and next year.
Speaking to the press on a conference call, Reithofer also said that car sales in the U.S. will be lower than last year. He said that the automaker will cut the number of cars that it originally planned to sell in the U.S. by 40,000 units. BMW will also cut production by 20,000 to 25,000 units to counter the current market conditions in the U.S.
Reithofer said that BMW will also cancel plans to produce the X7, a large SUV that was supposed to compete with the Range Rover and Mercedes-Benz GL-Class.
Source: Automotive News (Subscription Required)