BMW has cut its 2026 operating-margin forecast for its automotive division to between -0.5% and +0.5%, down from its previous range of 1% to 3%.
The Munich-based group said on 4 November that third-quarter profit before tax fell 10.6% year on year to €2.083 billion. The automotive division posted an EBIT margin of 3.4% for the quarter.
BMW said it would expand and accelerate portfolio and structural measures. The resulting one-off, non-operating costs are expected to weigh on the automotive division’s reported fourth-quarter result. Excluding those measures, the company still expects an operating EBIT margin above 2% for 2026.
Reuters reported on Wednesday that BMW also plans to speed up reductions in management functions. A restructuring programme announced in July envisages around 8,000 job reductions worldwide by the end of 2027. DPA reports at the time said a substantial share would be in Germany, mainly through natural attrition and voluntary departures in non-production roles; direct production jobs were excluded.
Weak demand in China and intensifying competition are among the pressures on the business. The outlook matters for employees, suppliers and Germany’s wider automotive industry. BMW has not published a breakdown of the planned reductions by employees’ migration background, so there is no evidence of a disproportionate impact on workers of Turkish origin.
Sources: BMW Group, Reuters and dpa.
