BMW targets margin recovery with cuts and local production
The plan includes a €2 billion investment in German production and a 20% cut in management roles by mid-2027, analysts said.
- BMW shares rose more than 3% on Wednesday as investors digested the German carmaker's recovery plans presented at its two-day Capital Market Day event in Munich and Bavaria.
- Weakness in China, where vehicle sales dropped 19%, triggered a 37% decline in operating profit in the first half of 2026, marking the Munich-based carmaker's third profit warning in three years.
- BMW will invest €2 billion in German production of its next-generation 3 Series sports sedan, including a new battery plant in Irlbach-Straßkirchen to secure skilled jobs in Lower Bavaria.
- Management launched a redundancy program affecting about 8,000 jobs in Germany while simplifying the model range and increasing artificial intelligence use in crash simulations to improve profitability.
- Bernstein analyst Stephen Reitman noted the company is pursuing growth through innovative products like the Neue Klasse range and electric iX3 SUV, targeting automotive margins of 3% to 5% by 2028.
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In order to become more efficient and cost-effective, BMW plans to reduce positions in management. First, it is intended to meet the divisional head level.
German automaker plans leaner structures by mid-2027 and targets recovery in automotive profitability
Reformatorisch Dagblad
Automaker BMW plans to eliminate 20 percent of management positions next year. The company aims to save costs by doing so. BMW expects to be able to delegate the tasks currently performed by managers to AI. According to a statement, this will make the company more agile again.
BMW Targets Shedding 20% of Managers Through AI in Savings Push
BMW AG is planning to deploy artificial intelligence to help eliminate a fifth of management roles by the middle of next year, part of an agreed buyout plan designed to slash costs and boost profitability.
Zeit Online
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