Key facts
- BMW aims for an 8% to 10% automotive profit margin by the early 2030s.
- An interim target of 3% to 5% automotive margin is set for 2028.
- The company plans to reduce model variants and management roles by 20% by mid-2027.
- In China, BMW will expand local production and rely more on local partners for technologies.
- BMW will invest €2 billion in German production of its next-generation 3 Series sports sedan.
BMW set out a restructuring plan on Wednesday centered on AI, management cuts, and two new model launches as the German luxury automaker seeks to restore investor confidence after a string of profit warnings and a deep slump in its share price. The company aims for an 8% to 10% automotive profit margin by the early 2030s, with an interim target of 3% to 5% by 2028, and automotive free cash flow of more than €7 billion. This compares to 2026 targets of 1% to 3% margin and more than €2.5 billion free cash flow.
The strategy includes reducing model variants, with no successor planned for the BMW 2 Series Active Tourer, and cutting management roles by 20% by mid-2027. In China, BMW plans to expand local production of high-volume categories while limiting imports to the most profitable models, aiming for at least 95% locally manufactured vehicles tailored to Chinese preferences by 2030. BMW will also expand its luxury SUV offering with a new model above the X7 series and is considering expanding exports of China-made vehicles to Southeast Asia. In Europe, a new entry-segment fully electric model from the Neue Klasse range is planned for 2028. The company will focus on securing critical raw materials and components through new partnerships, including with competitors within the EU.
Artificial intelligence will be significantly expanded across BMW's value chain, and navigation-guided driver assistance will be offered in Germany based on DCAS regulation, with other countries to follow. BMW plans to invest €2 billion in German production of its next-generation 3 Series sports sedan.