BMW says that its getting a cash flow boost as vehicle markets continue to recover from the pandemic-induced population lockdowns of the spring.

BMW said in a statement that preliminary free cash flow for its automotive business in the third quarter 2020 amounts to EUR3,065m (previous year: EUR714m) and exceeds current market expectations. This, it said, was due in particular to a faster recovery in several markets, which led to higher sales growth.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

In addition, the company said its has optimised the use of working capital (comprises inventories as well as trade receivables and trade payables) and reduced fixed costs and capital expenditure.

BMW’s statement echoes the recent upbeat announcement from Daimler that also said a faster than expected recovery of demand is boosting its financial position.

However, BMW also warned that economic disruption caused by the coronavirus pandemic ‘continues to significantly impair forecasting and leads therefore to considerable uncertainty in providing an accurate outlook’.

The previous earnings forecasts for the individual segments and the BMW Group remain unchanged.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

BMW will release its full third quarter (quarter ending 30 September) results on 4 November.

See also: Daimler reports ‘faster than expected’ recovery

Just Auto Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Auto Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now