BMW has unveiled a restructuring plan aimed at stabilizing its financial performance amid declining profits and a significant drop in share value. The strategy includes cutting approximately 8,000 jobs in Germany and reducing management positions by 20% by mid-2027.
The company aims to achieve an operating margin of 3–5% in its automotive business by 2028, with a long-term goal of 8–10% by the early 2030s. The current margin stands at 2.3%. Artificial intelligence will be deployed to optimize operations and accelerate decision-making processes.
Product strategy will be tailored to regional markets, with a budget electric vehicle planned for Europe by 2028 and a luxury SUV targeting US consumers. In China, BMW intends to deepen local production and collaborate with domestic partners on autonomous driving and software.
CEO Milan Nedeljković, who took office in May 2026, stated that the plan addresses challenges such as weak demand, competition from Chinese brands, and US trade tariffs. The company also explores exporting vehicles from China to Southeast Asian markets.
