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BMW could face raw materials hit of over $1.2B, CFO says

LONDON — Rising raw material prices, in particular for rhodium, palladium and steel, could cost BMW an additional 1 billion euros ($1.21 billion) in 2021.

The higher raw material costs will be partly offset by favorable currency exchange rates, so the net impact will be about 500 million euros, the company’s chief financial officer, Nicolas Peter, said in a conference call on Friday.

His comments came after BMW reiterated its full-year profit margin outlook but said that it expected the rest of the year to remain volatile.

BMW has largely avoided the global semiconductors shortage. The company paused production of Mini cars at its factory in Oxford, England, due to a shortage of microchips, and reduced shifts at its plant in Regensburg, Germany.

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