Key facts
- BMW has significantly lowered its 2026 profit outlook.
- BMW now expects an EBIT margin of 1-3% for its automotive segment.
- BMW's previous profit outlook was 4-6% for its automotive segment.
- BMW cited an accelerated downturn in the Chinese market.
- BMW cited the impact of the Iran war.
- Volkswagen will reduce production of the T-roc Cabrio SUV.
- Volkswagen's Osnabrueck, Germany plant will extend holiday closure by a week.
- Volkswagen's Osnabrueck plant will add production-free days.
- There are no production plans for the Osnabrueck plant beyond next year.
- Employee representatives are concerned about the Osnabrueck site's future.
German automotive giants BMW and Volkswagen are signaling a challenging period ahead, with both companies announcing production cuts and revised profit expectations. BMW has significantly lowered its 2026 profit outlook, now anticipating an EBIT margin of 1-3% for its automotive segment, a sharp decrease from the previously projected 4-6%. This downward revision is attributed to an accelerated downturn in the Chinese market and the broader economic impact stemming from the Iran war.