BMW plans to cut costs and launch new models

BMW has presented a new plan to strengthen its business. The company will launch two new models, cut the number of managerial positions, and change its strategy for operating in the Chinese market.

Starting in 2028, BMW will release a relatively affordable electric vehicle in Europe. For the US market, it is preparing a new premium SUV.

In China, BMW will increase local production and expand cooperation with Chinese companies in autonomous driving and software.

By mid-2027, BMW will cut the number of departments and managerial positions by 20%. A separate ongoing program in Germany will affect about 8,000 jobs. The company also plans to use artificial intelligence to speed up decision-making processes.

BMW's automotive business profit margin currently stands at 2.3%. The company wants to raise this figure to 3%-5% by 2028, and return to 8%-10% by the start of the next decade. The reason for these changes is a decline in sales in China, US tariffs, and several downgrades to profit forecasts.

Source: Reuters