BMW profits decline 76%

BMW has reported a 76% decline in second-quarter profit as a result of the recession. The company reported that Q2 revenues dropped 11% but profits were down to $174m, compared to four times that figure a year earlier. Much of the problem is in the United States where sales have dropped by more than 25% this year. One of the biggest problems for the company is that its competitors have been offering serious discounts to get rid of unsold vehicles. BMW has cut back on its production as a result. The company says that its decision to quit Formula 1 was not related to the economic situation.