BMW chairman Norbert Reithofer has said he is optimistic about the long-term future thanks to the company’s current restructuring and cost-saving programme.
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Speaking at an event organised by a major financial newspaper, Börsen-Zeitung, he said he is hopeful that the company can convince investors, analysts and the media that the company is on the right track, although he recognises that BMW is no longer a true ‘stock market darling’.
BMW shares have been under pressure because BMW has not been delivering the profits that it has done in the past. Since the beginning of the year BMW shares have lost a third of their value, according to Automobilwoche. The main problem has been the US market where BMW sells a quarter of its cars.
Other negative factors include high raw material prices and a weak dollar.
Earlier this month Reithofer said that BMW’s financial position would be much stronger from 2010. He said the US market will remain weak for a while. Reithofer said that diminishing fossil fuels and growing environmental awareness, particularly related to climate change, are the major challenges facing vehicle manufacturers.
