Key facts
- BMW AG lowered its 2026 profit outlook.
- BMW AG expects a 2026 automotive EBIT margin of 1%-3%.
- BMW AG anticipates a significant drop in pre-tax profit.
- BMW shares fell over 7% following the profit warning.
- BMW cited weakening demand in China and the Middle East conflict for its warning.
- A survey of German automotive suppliers shows a worsening outlook.
- German auto suppliers are reducing investment and hiring.
- Companies are shifting capital and jobs abroad, particularly to Asia.
- Volkswagen will cut production of the T-roc Cabrio SUV at its Osnabrueck plant.
- Volkswagen is extending a holiday closure by a week and adding production-free days.
- Employee representatives are concerned about the Osnabrueck plant's future.
BMW AG has issued a profit warning, significantly lowering its 2026 outlook and causing its shares to fall over 7%. The company now expects an automotive EBIT margin between 1% and 3%, a sharp decline from previous projections, and anticipates a substantial drop in pre-tax profit. This downward revision is attributed to weakening demand in China and the ongoing impact of the Middle East conflict.