German carmaker slashes profit margin to between -0.5% and 0.5% this year in face of competition from China

The German carmaker BMW has issued its second profit warning in a year, blaming the costs of a restructuring programme including significant job losses in the face of continuing competition from China.

The company is the latest to issue a profit downgrade in the German car sector, with Mercedes-Benz last week cutting its profit outlook. Western automakers have struggled to keep pace with lower-cost domestic rivals in China, which has led to reduced sales there and a rise in exports to Europe.