BMW issues a big profit warning it once again blames on China. The automaker is plotting a major strategy shift

BMW lowered its profit outlook, citing a downturn in China and the impact from the Middle East war. The warning made BMW the worst performing major European stock on Wednesday, signaling material pressure on earnings and near-term demand. The combination of weaker China conditions and geopolitical disruption is negative for the luxury auto sector.

Analysis

BMW lowered its profit outlook, citing a downturn in China and the impact from the Middle East war. The warning made BMW the worst performing major European stock on Wednesday, signaling material pressure on earnings and near-term demand. The combination of weaker China conditions and geopolitical disruption is negative for the luxury auto sector.