On Friday, luxury carmaker BMW — Bayerische Motoren Werke AG ADR (OTC:BMWYY) — posted a 2024 revenue decline of 8.4% to 142.38 billion euros.

The carmaker is grappling with an escalating trade war between the U.S. and the EU as President Donald Trump threatens higher tariffs on Europe’s car imports from April 2.

Here’s a breakdown of the report.

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BMW held 19.29 billion euros in cash and equivalents as of Dec. 31, 2024. The company also cut its dividend to 4.30 euros from 6 euros it paid out for 2023.

BMW chair Oliver Zipse told Reuters it expects trade tariffs to cost the carmaker 1 billion euros ($1.09 billion) this year.

The carmaker expects its earnings margin for cars to be 5-7% in 2025, below a consensus estimate of 7.3%.

BMW proposed an increased payout ratio of 36.7%, consisting of a dividend of 4.32 euros per preferred share for 2024. That’s down from 6.02 euros paid out for the previous year.

BMW cut its 2024 margin outlook to 6%-7% from 8-10% in September. The comapny blamed slumping China sales and issues related to the Integrated Braking System (IBS) supplied by a vendor. 

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