BMW to cut management roles 20% as it targets higher profitability

The company is expanding AI across development, production, purchasing, sales and aftersales.

BMW Group said Wednesday it is restructuring its operations and product portfolio to improve competitiveness as market conditions become more challenging.

The company expects an Automotive EBIT margin of 3% to 5% in 2028 and aims to return to its long-term 8% to 10% target range by the start of the next decade, with Automotive free cash flow targeted at at least €7 billion.

The strategy includes a more regionalized model lineup, fewer vehicle variants and greater localization in China, where BMW aims for at least 95% of vehicles to be locally manufactured and tailored to Chinese customers by 2030.

The company is also considering a new top-end SAV for the US and plans a compact electric model using Neue Klasse technology for Europe in 2028.

AI will be expanded across BMW’s value chain, including vehicle development, manufacturing, purchasing and sales, with agentic systems supporting testing, engineering and decision-making.

BMW also plans to cut divisions and related management roles by 20% by mid-2027 as part of its workforce and cost restructuring.

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