BMW auto division targets 3%-5% margin in 2028, Bernstein says
Bernstein analysts said BMW set a 3%-5% auto division margin target for 2028 and aims for 8%-10% by the early next decade, citing fewer models and more localization; BMW also confirmed plans for a luxury SUV above the X7 and more M and Alpina focus from 2027.
(Adds more details, background from paragraph 2) 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. 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.
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