BMW cuts profit outlook as restructuring and China slowdown weigh
Original report:
BMW’s second profit warning of 2026 reflected restructuring costs linked to 8,000 planned job cuts in Germany and weaker Chinese sales. The carmaker lowered its annual margin forecast to around break-even, after initially targeting 4–6%.
BMW cut its 2026 profit margin forecast to between -0.5% and 0.5%, according to the Guardian’s 4 November report, citing fourth-quarter restructuring costs that included plans to eliminate 8,000 jobs in Germany. The downgrade was its second profit warning of the year, replacing an initial annual margin expectation of 4–6%.
Third-quarter pre-tax earnings fell 11% to €2.1bn, while revenue dropped 6% to €30.4bn. Sales in China declined 22% over the first nine months, which BMW attributed to a wider market downturn. The company said it would accelerate structural changes and reduce management functions more quickly.
The report places BMW’s restructuring within broader pressure on German carmakers from lower-cost Chinese competitors, with Mercedes-Benz also cutting its outlook. For BMW, the shift to a new generation of electric vehicles carried additional costs: it was writing off parts of older vehicle and technology programmes alongside redundancy expenses.
Source
the Guardian — 4 November 2026
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