BMW Group has openly announced a downward revision of its 2026 outlook and unveiled plans for upcoming cost-cutting measures. According to Reuters, the company\u2019s shares fell by approximately 7% following the announcement, reaching their lowest level since late 2020.<\/p>\n
BMW attributes the weaker outlook to several factors. One of the key challenges is the conflict in the Middle East, which has driven up oil prices and disrupted global supply chains. Higher fuel costs have, in turn, affected demand for vehicles powered by traditional internal combustion engines and accelerated the shift toward electric vehicles.<\/p>\n
While BMW has expressed confidence in the market reception of its new Neue Klasse electric vehicle lineup, EVs currently account for only around 15% of the company\u2019s total sales, which is insufficient to fully offset declines in other segments.<\/p>\n
An even more serious concern for the automaker remains the Chinese market. According to data from the local automotive industry association, sales of BMW vehicles manufactured in China fell by 14.9% year-on-year between January and May 2026, totaling 187,899 units.<\/p>\n
Meanwhile, domestic Chinese manufacturers continue to expand aggressively. For example, Xiaomi sold 150,317 vehicles during the same period, while Leapmotor nearly matched BMW\u2019s performance with 187,817 units sold.<\/p>\n
BMW Group\u2019s new CEO, Milan Nedeljkovi\u0107, who assumed the role only last month, stated that the company will need to significantly reduce costs. However, no specific decisions regarding potential workforce reductions or plant closures have been announced so far.<\/p>\n
BMW now expects a substantial decline in net profit for 2026, whereas it had previously forecast only a modest decrease. For comparison, BMW Group reported a net profit of \u20ac7.45 billion in 2025, which was already 3% lower than the previous year.<\/p>\n
The company has also revised its forecast for the operating margin of its automotive business. While it previously expected a margin of 4\u20136%, the outlook has now been reduced to 1\u20133%.<\/p>\n","protected":false},"featured_media":151779,"menu_order":0,"template":"","newscat":[9],"newstag":[],"issues":[],"class_list":["post-151778","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/151778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/151779"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=151778"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=151778"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=151778"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=151778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}