The BMW logo is displayed at the 46th Bangkok International Motor Show in Bangkok, Thailand, March 24, 2025. REUTERS
DINGOLFING, Germany, Sept 30 (Reuters) – BMW set a margin target of 3% to 5% for its auto division in 2028, Bernstein analysts wrote in a note on Wednesday, as the German company plans to offer fewer models and increase localization.
By early next decade, BMW hopes to return to a range of 8% to 10%, Bernstein wrote, which would be a steep climb from its most recent result of 2.3%.
“BMW understands the solution is not simply cost-cutting. It is also pursuing growth with innovative products,” Bernstein’s Stephen Reitman said, adding that its Neue Klasse line-up with the electric SUV iX3 is central to its recovery.
At its capital markets day, BMW confirmed its plans to launch a luxury SUV that sits above the X7 and will push more on its M brand and Alpina models from 2027 to expand its premium portfolio, the note said.
BMW will release details on its strategy later on Wednesday, a spokesperson said.
As Germany’s auto giants are hammered by Chinese competition and US tariffs, BMW’s reputation for stability in turbulent times took a hit in June when it issued a shock profit warning.
The car maker announced a redundancy programme soon after, expected to cost some 8,000 jobs in Germany.
Reporting by Christina Amann, additional reporting by Rachel More, writing by Thomas Seythal, editing by Ludwig Burger
