BMW bets it can beat global chip shortage

BMW is betting it can beat the global shortage of computer chips.

The auto industry has been hit hard by the silicon drought, forcing many factories to halt output.

But on Friday (May 7) BMW said it didn't expect any major impact on production.

The premium brand will prioritise higher-margin vehicles if there is any manufacturing slowdown.

As a result BMW is sticking to its profit targets for the year.

It expects a margin of up to 8% at its core autos business.

Sales of the firm's electrified models are booming.

They more than doubled in the first quarter.

The carmaker now expects to have 2 million fully electric vehicles on the roads by 2025.

Strong demand and prices in China were another positive over the period.

Raw material prices may be more of a worry though.

BMW expects prices of steel, palladium and rhodium to all head higher.

The sunny outlook supported shares, however, with BMW up around 0.7% by early afternoon.

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