BMW has said its free cash flow for the fourth quarter of 2020 is around EUR2.8bn (Q4 2019: EUR1.5bn) and 'better than expected', reflecting a positive Q4 operating result, inventories management and reduced warranty provisions due to lockdowns.

The company also said there were higher down payments received from BMW Group dealerships, most notably in China in line with the positive market development and in the UK relating to Brexit.

According to  BMW, the positive operating result of the Automotive segment in the fourth quarter is partially due to better than expected remarketing results in the pre-owned car market.

The company also said that due to the faster recovery in many markets in the second half of 2020 and consequent cost management, the EBIT margin in the Automotive Segment for the full year 2020 is at the upper end of the 0-3% corridor. The BMW Group EBT remains within the outlook and in line with market expectations, BMW said.

Full details of BMW's Q4 and 2020 performance will be released on 17 March.