Archive · 1 Oct 2026
BMW unveils AI-led recovery plan amid tariffs and weak demand
BMW is a large car company trying to recover after several profit warnings.
Its business has been hurt by weak demand, Chinese competition, and US tariffs.
The company says it will use artificial intelligence to make decisions faster and simplify its management.
About 8,000 jobs in Germany are expected to be affected.
BMW also wants to reduce the number of divisions and related managers by one-fifth by mid-2027.
It hopes its car business will become more profitable by 2028 and again in the early 2030s.
BMW plans a less expensive electric car for Europe starting in 2028.
It also plans a luxury SUV for US buyers and more local partnerships in China.
BMW plans to cut about 8,000 jobs in Germany as part of a restructuring programme.
The automaker aims to reduce divisions and related management roles by 20% by mid-2027, using AI to streamline decisions.
BMW targets automotive margins of 3% to 5% by 2028 and 8% to 10% in the early 2030s.
The company plans an entry-level European EV from 2028 and a new luxury SUV for wealthier US consumers.
BMW will further localise production in China and consider exporting vehicles from China to Southeast Asia.
- Who
- BMW, led in the announcement by CEO Milan Nedeljković.
- What
- BMW unveiled a restructuring and product-recovery plan involving AI, job and management cuts, and new electric and SUV models.
- When
- The plan was announced on Wednesday; key targets run through 2028, the early 2030s, and mid-2027.
- Where
- The plan was presented at BMW's Gut Schwaerzenbach retreat in Bavaria and at its Munich headquarters, with measures covering Germany, Europe, China, the United States, and Southeast Asia.
- Why
- BMW is responding to profit warnings, weak Chinese performance, weak demand, Chinese competition, US tariffs, and a major decline in its share price.
- Expected job impact
- About 8,000 jobs in Germany
- Management reduction target
- Divisions and associated management roles to fall by 20% by mid-2027
- Automotive margin target by 2028
- 3% to 5%
- Longer-term margin target
- 8% to 10% in the early 2030s
- European EV
- Entry-level electric vehicle planned from 2028
- Share-price performance
- Shares have fallen more than one-third over the past year to a level not seen in more than six years
- China strategy
- More localised production, greater use of local technology partners, and possible exports to Southeast Asia