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, after Mercedes-Benz last week cut its profit outlook. Western automakers have struggled to keep pace with lower-cost Chinese rivals, which has led to reduced sales in China and a rise in Chinese exports to Europe.