Overview
- BMW disclosed on Tuesday that it has lowered its 2026 automotive core EBIT margin guidance to minus 0.5% to plus 0.5%, a range that could see the car unit post an operating loss.
- The company said its restructuring is being accelerated, with about 8,000 roles covered by the plan and faster-than-expected redundancies producing larger severance charges due in Q4.
- Strong early demand for Neue Klasse models forced BMW to add extra production shifts, raising near-term costs and allowing an early phase-out of some Gen5 EV models.
- BMW now expects automotive deliveries to fall more steeply in 2026, forecasting a decline of roughly 5% to 9.9%, while it keeps an automotive free cash flow target above €2.5 billion.
- The profit warning follows wider pressure on German premium makers from weaker China demand and sharper local competition and could prompt further cost cuts and investor caution in the sector.