FRANKFURT, Germany (AP) – German luxury automaker BMW AG saw net profit slip 1 percent in the second quarter amid higher launch costs for new vehicles as key models approach the end of their life cycle, the company said Tuesday.
The company also cautioned it was facing a tougher market in China, a major pillar of its profits.
Net profit fell to 1.749 billion euros ($1.9239 billion) from 1.767 billion euros in the April-June quarter of last year.
Munich-based BMW also said it sold a less profitable mix of vehicles, containing more compact cars that typically have lower profit margins.
Key BMW models such as the 5 Series and 7 Series sedans are nearing the end of their life cycle, which can hurt sales as customers see newer products from competitors. The company has already unveiled a new 7 series, which will go on sale this fall.