BMW plans SUV above X7, confirms electric 1 Series
BMW said the plan will cut management roles by 20% by mid-2027 and lift margins after repeated profit warnings.
- On Wednesday, BMW unveiled a restructuring plan centered on AI, management cuts, and two new model launches as the German luxury automaker seeks to restore investor confidence after profit warnings and share price declines.
- BMW shares have fallen more than a third in six years to their lowest level, prompting the strategy shift after the automaker issued its third profit warning in three years due to weak demand in China and US tariffs.
- The company will cut about 8,000 jobs in Germany while targeting a 3% to 5% margin in its core automotive business by 2028, eventually aiming for 8% to 10% by the early 2030s.
- BMW is considering an additional SUV offering above the current top-end X7 model, specifically tailored to the needs of the US market as it adapts its product strategy to diverging regional tastes.
- CEO Milan Nedeljkovi said the plans help BMW "meet the increasingly fierce competition that will define this industry in the coming years," utilizing the electric-only Neue Klasse platform for future high-volume entry segments.
15 Articles
15 Articles
BMW has long been regarded as a positive exception to the German car crisis. However, the new boss now clears up: profit target cut, 8000 office jobs for disposition, models cut, costs cut. However, the most important part of his plan only works years later – possibly too late.
BMW is aiming for the top of the luxury SUV segment, confirming plans to develop a flagship super-large SUV designed explicitly to compete with American giants like the Cadillac Escalade, the long-wheelbase Range Rover, and the newly launched Audi Q9. Positioned significantly above the current X7, this upcoming model – rumored to carry the X9 badge or originate from the internal codename G63 – will be designed and assembled directly in the US at…
BMW, Audi and Volvo intend to increase sales in the US market by producing a new generation of large-scale SUVs. European car manufacturers are developing new models of enlarged SUVs specifically for buyers in the US to compensate for falling demand in Europe and China. This week, BMW representatives at a meeting with investors in Munich announced plans to create a huge SUV segment exclusively for the US market. Volvo also promised to present a …
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