MUNICH, Germany (September 30, 2026) — The BMW Group used its Capital Market Day 2026 to give a first look at how it plans to make the company more resilient and competitive ahead of increasingly challenging market conditions. It will rely on its core strengths: openness to multiple drive technologies, the capacity to innovate, a global presence, and a clear premium brand strategy. The company has already made far-reaching decisions and begun its first measures, and it expects to decide on a number of further topics by spring 2027.
The goal is to bring the Automotive Segment’s EBIT margin back within its long-term target range of 8% to 10% by the start of the next decade, with Automotive free cash flow rising to at least €7 billion. As an interim step, BMW expects an EBIT margin of 3% to 5% in 2028.
“The BMW Group has always been at the forefront of the automotive industry – and that is where it belongs in the future as well. Under increasingly challenging conditions, we have defined initial measures to reposition ourselves and will implement them with strong momentum. The BMW Group has the critical expertise to successfully pursue this path. The strengths of our corporate culture are also crucial to this: Courage and pragmatism will be just as important as having an entrepreneurial mindset and the determination to succeed.”
– Milan Nedeljković, Chairman of the Board of Management of BMW AG
A Regional, Focused Portfolio
The first step is to align the model lineup more closely with regional customer preferences. BMW will expand and strengthen the range where it counts and make significant changes to its drivetrain portfolio, concentrating on the models that deliver the most value to customers and the highest long-term contribution margins in each market. At the top of the range, the BMW, BMW M and Rolls-Royce brands will be refined to unlock more earnings potential.
As part of that effort, BMW will bring the first BMW Alpina model to market next year. Inspired by the BMW 7 Series, it will fill the space between BMW and Rolls-Royce. At the same time, BMW will review and reduce the number of variants across its lineup. Some models, including the BMW 2 Series Active Tourer, will not be replaced.
China is a particular focus. With the launch of the Neue Klasse, BMW will expand local production in high-volume segments and limit imports to its highest-margin models. It will also expand local development, with the aim of having at least 95% of its locally built vehicles there developed specifically for Chinese customers by 2030. The company is also considering exporting China-built vehicles to Southeast Asian markets.
In the U.S., BMW is considering a new Sports Activity Vehicle above the X7, tailored closely to American buyers. Plant Spartanburg, the “home of X,” is already running at full capacity, so BMW is also pursuing more regional SAV production to meet demand worldwide. In Europe, BMW will strengthen its entry-level lineup in 2028 with another fully electric Neue Klasse model, bringing the architecture’s technology to its compact cars alongside the all-electric MINI range.
AI Across the Value Chain
BMW sees the systematic, company-wide use of artificial intelligence as a key driver of speed, faster decisions and greater efficiency, from development and purchasing through sales, marketing and aftersales. In vehicle development, the company is moving AI from individual applications into its core processes. Specialized AI agents are expected to support the full path from initial technical requirements through testing and release, with developers reviewing and approving the results. One example is BMW’s work with Mistral AI on crash simulations, which combines BMW’s engineering data with Mistral’s training capabilities to build specialized AI models. To scale this approach, BMW is turning to Large Industry Models trained on industry-specific engineering and simulation data. In production, AI is already a core part of the BMW iFACTORY, and self-learning robots paired with AI agents are laying the groundwork for what BMW calls Physical AI.
“Consistent use of agentic AI applications across all areas of the company will be a game-changer for more agile and efficient development, leaner structures and faster decision-making.”
– Walter Mertl, Member of the Board of Management of BMW AG, Finance
BMW points to demand for its latest technology as evidence of its innovative strength, citing more than 100,000 orders in Europe for the BMW iX3 and strong interest in the new i3 and X5. The Neue Klasse’s zonal electrical architecture will be used across all segments, laying the groundwork for what BMW calls the AI-defined vehicle, in which driver assistance, infotainment, and basic and comfort functions all work together according to the situation.
Driver Assistance
A new L2++ driver-assistance system developed with Momenta will launch in China with the Chinese-market BMW iX3. In 2027, through its development partnership with Qualcomm, BMW will be among the first automakers to offer navigation-guided driver assistance in Germany on highways, secondary roads and city streets under the new EU regulation for Driver Control Assistance Systems. Other countries, including the U.S., will follow in stages, and customers with the new vehicle generation will be able to activate the features over the air. By the end of this year, BMW’s hands-free Highway Assistant will be available in 21 countries. BMW customers have already covered more than 155 million miles hands-free with it.
Supply Chains and Sales
To build resilience amid geopolitical volatility, BMW is pursuing new partnerships, alternative concepts and closer cooperation with other automakers within the EU to secure critical raw materials and components, including semiconductors. In sales, following the launch of an agency model for MINI in 24 European markets, BMW plans to begin rolling out the same model for the BMW brand in mid-2027. This will give the company consistent data across the entire customer journey in Europe, with AI at the foundation of the sales system.
Leaner Structures
In July, BMW reached an agreement with its Works Council on a significant restructuring of its workforce, which includes a voluntary severance program. By the middle of next year, the company will cut the number of divisions and associated management roles by 20%, with comparable reductions at the levels below, and it will streamline its processes over the coming months.
“Our global business model remains the foundation of our success. At the same time, we are improving our structures and cost base so we can meet the increasingly fierce competition that will define this industry in the coming years. The workforce restructuring program is an important lever for this.”
– Milan Nedeljković
BMW says openness to multiple drive technologies and the Neue Klasse will remain the cornerstones of its corporate strategy.
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