\n<\/p>\n
BMW set out a restructuring plan on Wednesday centred on \u200cAI, 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.<\/strong><\/p>\n As Europe\u2019s car industry struggles with weak demand, Chinese competition and US tariffs, \u200bBMW\u2019s reputation for stability took a hit in June when it issued its third profit warning linked \u200bto weak performance in China in just over three years.<\/p>\n The company responded with a redundancy \u2060programme expected to affect about 8,000 jobs in Germany, joining rivals Volkswagen and Mercedes-Benz in cutting costs.<\/p>\n BMW, whose shares \u200bhave fallen more than a third over the past year to their lowest level in more than six years, unveiled \u200bthe recovery plan during a two-day investor event at its Gut Schwaerzenbach retreat in Bavaria and at its Munich headquarters.<\/p>\n It set a medium-term target for margins in its core automotive business of 3% to 5% by 2028. By the early 2030s, BMW aims \u200bto return to a margin range of 8% to 10%, up from 2.3% in its latest results.<\/p>\n By mid-2027, the \u200bgroup aims to cut divisions and associated management roles by a fifth. AI will play a central role in efforts to \u200cstreamline the \u2060company and speed up decision-making, it said.<\/p>\n CEO Milan Nedeljkovi\u0107 said that the plans would help BMW \u201cmeet the increasingly fierce competition that will define this industry in the coming years.\u201d<\/p>\n \u201cIt\u2019s not a cost-savings programme,\u201d said the former production head, who took over as CEO in May. In China, BMW plans to further localise production and rely more on local partners for technologies including autonomous driving \u200band integrated software. It is also examining potential exports from China to Southeast Asia.<\/p>\n \u201cUnder \u200bincreasingly challenging conditions, \u2060we have defined initial measures to reposition ourselves and will implement them with strong momentum,\u201d Nedeljkovi\u0107 said, adding that BMW could not have foreseen how rapidly the Chinese market was changing and was therefore cautious with its forecast.<\/p>\n Western carmakers have \u2060seen Chinese \u200bconsumers shift rapidly towards domestic brands, hurting sales in the world\u2019s \u200blargest auto market, long a key profit driver.<\/p>\n US tariffs have added to the pressure, although BMW is less exposed than some rivals because of \u200bits plant in Spartanburg, South Carolina.<\/p>\n \u00a0<\/p>\n<\/div>\n
The group is also adapting its product strategy to diverging trends in key \u200bmarkets, planning an entry-level EV \u200bfor Europe from 2028 \u2060while targeting wealthier US consumers with a new luxury SUV.<\/p>\n