German premium automaker BMW is set to present a recovery strategy at a two‑day investor event in Munich, aiming to restore profitability after a series of profit warnings tied to weak sales in China.
Margin targets and production adjustments
Bernstein analysts say BMW will pursue a mid‑term automotive‑division margin of 3% to 5% by 2028, with an ambition to reach 8% to 10% by the early 2030s. This marks a significant improvement from the most recent result of 2.3%.
The company plans to invest roughly €2 billion ($2.3 billion) in German production of its next‑generation 3 Series sports sedan, while also adjusting capacity in China, which Bernstein identifies as the primary region needing flexibility.
Cost‑cutting and job reductions
BMW will implement a redundancy programme expected to affect about 8,000 positions in Germany, joining fellow German manufacturers Volkswagen and Mercedes‑Benz in cutting costs to protect margins.
Product strategy
According to Bernstein, BMW’s recovery plan includes launching a luxury SUV positioned above the current X7 and expanding its M and Alpina performance lines from 2027 onward. The electric iX3 SUV, part of the Neue Klasse range, is highlighted as a key growth driver.
Shares in BMW rose 1.4% during the announcement, reflecting investor optimism about the outlined measures.
Official comments
A BMW spokesperson confirmed that detailed strategy elements will be disclosed later on Wednesday, emphasizing that the solution involves both cost discipline and growth through innovative products.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
