BMW has unveiled a restructuring and recovery plan focused on artificial intelligence, management cuts and new vehicle launches as the German luxury automaker seeks to improve profitability amid weak demand and growing competition.
The company is targeting an operating margin of 3% to 5% in its core automotive business by 2028. BMW also aims to return to an 8% to 10% margin range by the early 2030s, compared with 2.3% in its latest results.
As part of the restructuring, BMW plans to reduce its divisions and associated management roles by 20% by mid-2027. The company said artificial intelligence will play a central role in streamlining operations and speeding up decision-making.
BMW is also adjusting its product strategy based on differences between major markets. The company plans to introduce a more affordable electric vehicle in Europe from 2028, while developing a new luxury SUV aimed at higher-income customers in the United States.
The changes come after a difficult period for BMW, particularly in China, where weaker demand has contributed to repeated profit warnings. The broader European automotive sector is also facing pressure from Chinese competition, weak demand and US tariffs.
BMW expects its restructuring to complement a redundancy programme in Germany that is expected to affect about 8,000 jobs.
In China, the automaker plans to increase local production and work more closely with domestic partners on technologies including autonomous driving and integrated software. It is also examining the possibility of exporting vehicles produced in China to Southeast Asian markets.
