BMW issues second profit warning in a year as it counts the cost of 8,000 job cuts

Germany's carmakers are feeling the squeeze. BMW issued its second profit warning in a year, cutting its profit margin forecast to between -0.5% and 0.5% for this year, The Guardian reports — at the start of the year it had thought 4-6% possible. The company blamed fourth-quarter costs of a restructuring that includes 8,000 job cuts in Germany. Third-quarter pre-tax earnings fell 11% to €2.1bn, and sales in China dropped 22% in the first nine months. Mercedes-Benz cut its outlook last week, as Western automakers struggle against lower-cost Chinese rivals. CEO Milan Nedeljković said current developments in the industry "call for decisiveness and swift implementation." BMW is betting on its Neue Klasse models, launching in China this month.