As of about 10:50 AM IST (05:20 GMT), Wednesday 4 November 2026. Figures are attributed to the sources that published them; anything not independently confirmed is flagged.
BMW cut the profit outlook for its core car business on Tuesday 3 November, its second downgrade this year, and said the division could slip into an operating loss for 2026. The Munich-based carmaker pointed to one-off costs from speeding up job cuts and restructuring, extra shifts to build its new Neue Klasse models, and weak demand in China.
The new guidance
| Measure (2026) | New forecast | Previous forecast |
|---|---|---|
| Automotive EBIT margin | -0.5% to +0.5% | 1% to 3% |
| Automotive deliveries | Moderate decrease (5% to 9.9% lower) | Slight decrease |
| Automotive RoCE | -1% to +1% | 1% to 5% |
| Automotive free cash flow | More than EUR 2.5 billion | Unchanged |
The 1% to 3% range was set in June and was itself a cut from the start of the year, AFP reported. Reuters said this was the second cut in five months.
Why BMW cut its forecast
- Faster restructuring: BMW said its redundancy programme was moving faster than expected, leading to bigger severance payments in the fourth quarter. "The reduction in management functions will be implemented faster than announced," it said. Reuters said BMW had recently set out plans that include around 8,000 job cuts.
- Neue Klasse demand: Sustained high demand for Neue Klasse models led BMW to add production shifts early, the company said. It also now expects the share of all-electric cars in deliveries to rise slightly this year.
- China: Like its peers, BMW faces fierce competition and falling demand in China, the world's biggest car market.
BMW said operating performance "remained solid" in the third quarter and that the hit is non-operating and falls in the fourth quarter. Before the structural and portfolio measures, it still expects an automotive EBIT margin above 2.0%.
The "portfolio measures" mean BMW will begin phasing out previous vehicle and technology generations earlier than planned, including selected models based on its Gen5 battery technology, because the Neue Klasse ramp-up is going faster.
Shares and peers
BMW's Frankfurt-listed shares were down 3.4% at 20:40 GMT on Tuesday, Reuters reported. The warning adds to a run of downgrades at German carmakers. Mercedes-Benz cut its profit outlook last week because of weakness in China, and Volkswagen has also issued profit warnings and is cutting jobs. BMW sold 2.46 million cars and more than 202,500 motorcycles in 2025, the company said.
What to watch
- BMW's Q3 report, which the company said will be published on Wednesday 4 November, for the size of the restructuring charges and margins by brand.
- Any update on job cuts, China sales and the Neue Klasse production ramp-up.
Related on HorizonDesk
- Global car sales Q3 2026: Hyundai third, BYD in the top five
- Volkswagen posts a EUR 5.9 billion Q3 operating loss
- France-Germany deal on the EU 2035 car CO2 target
