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BMW Sets Clear Margin and Cash Targets as It Restructures

The company ties management cuts, China localisation and tech investments to specific financial goals to stop its profit decline.

Overview

  • At a capital markets update on Sept. 30, BMW announced targets of a 3–5% automotive margin by 2028 and 8–10% by the early 2030s together with free cash flow above €5 billion in 2028 and above €7 billion thereafter.
  • The group will cut organisational complexity by reducing divisions and management roles by 20% by mid-2027 and has already launched a redundancy programme expected to affect roughly 8,000 jobs in Germany.
  • BMW will expand local production in China so that at least 95% of China-specific models are made locally by 2030 and will limit imports to its highest-margin cars while exploring China exports to Southeast Asia.
  • The company said it will invest about €2 billion in German production of the next 3 Series and pursue a product push that includes a Neue Klasse entry EV in 2028 and a new luxury SUV above the X7.
  • BMW plans to widen use of artificial intelligence across design, testing and operations, roll out navigation-guided driver assistance under DCAS, and form supply partnerships in the EU to secure semiconductors and critical raw materials.