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Updated · Bloomberg · Jun 18BMW Sees 1%-3% Margin, Lowest Among European Carmakers, as China Weakness Deepens
3 articles · Updated · Bloomberg · Jun 18Summary
- BMW now expects its 2026 automotive operating margin at 1%-3%, a level that would make it the least profitable major European carmaker this year.
- China’s slump drove the warning, ending BMW’s relative resilience against the intense competition that has already battered other German rivals.
- Shares tumbled 7% after the June 17 profit warning, when BMW cut its margin target from 4%-6% and said it would step up cost cuts.
- The downgrade also reflected Middle East pressures, underscoring how BMW’s setback is feeding a broader squeeze across Europe’s auto sector.
Insights
Is BMW's profit collapse the final sign that Germany's century of auto dominance is over? With Chinese rivals surging, can BMW's new CEO transform the carmaker into a tech company fast enough to compete?