BMW plans SUV above X7, confirms electric 1 Series
BMW said the plan will cut management roles by 20% by mid-2027 and lift margins after repeated profit warnings.
- On Wednesday, BMW unveiled a restructuring plan centered on AI, management cuts, and two new model launches to restore investor confidence after profit warnings and share price declines.
- BMW shares have fallen more than a third in more than six years, prompting the strategy shift after the automaker issued its third profit warning in three years linked to weak demand in China and US tariffs.
- The company will cut about 8,000 jobs in Germany while targeting a 3% to 5% margin in its core automotive business by 2028, eventually aiming for 8% to 10% by the early 2030s.
- BMW is considering an additional SUV offering above the current top-end X7 model, specifically tailored to the needs of the US market as the automaker targets wealthier consumers.
- CEO Milan Nedeljkovi said the plans help BMW "meet the increasingly fierce competition that will define this industry in the coming years," utilizing the electric-only Neue Klasse platform for future high-volume entry segments.
22 Articles
22 Articles
BMW to Cut 20% of Management in Massive AI Overhaul
BMW is planning a massive structural overhaul. The German automaker intends to flatten its corporate bureaucracy by combining a fast-paced expansion of Artificial Intelligence with widespread management cuts. This means that BMW is weaponizing AI agents to completely bypass the middle-management decision-making ladder. That is exactly why BMW is planning to eliminate one-fifth of its business divisions and associated Senior Vice President... (co…
BMW has announced a new restructuring plan that puts AI at the heart of the company's strategy, announcing major changes to management and its vehicle range. The company aims to use AI more widely in car development, purchasing, production and after-sales service. As part of the plan, BMW will cut 20% of its management positions and levels by mid-2027. BMW's chief financial officer, Walter Mertl, has called autonomous AI a "fundamental change" t…
BMW has long been regarded as a positive exception to the German car crisis. However, the new boss now clears up: profit target cut, 8000 office jobs for disposition, models cut, costs cut. However, the most important part of his plan only works years later – possibly too late.
BMW is aiming for the top of the luxury SUV segment, confirming plans to develop a flagship super-large SUV designed explicitly to compete with American giants like the Cadillac Escalade, the long-wheelbase Range Rover, and the newly launched Audi Q9. Positioned significantly above the current X7, this upcoming model – rumored to carry the X9 badge or originate from the internal codename G63 – will be designed and assembled directly in the US at…
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