BMW cuts profit forecast for second time amid intense Chinese competition

Published 8h ago · Latest report 4h ago · Economic report

Affects Germany and China · Covered in 2 countries

AI summary41s readNegative

BMW issued a second profit warning for the year, slashing its margin and cutting thousands of jobs.

German automaker BMW slashed its annual profit margin forecast for the second time this year, citing fierce competition in China and the heavy costs of a major restructuring plan. The company now expects its full-year profit margin to land between -0.5% and 0.5%. This downgrade follows a similar profit warning from rival manufacturer Mercedes-Benz.

The targetBMW revised its annual profit margin forecast to a range of -0.5% to 0.5%.
The contextThe company is absorbing restructuring expenses tied to a planned reduction of 8,000 jobs.
The pressureIntensifying competition and shrinking sales in China drove the downward revision.

Written from 2 of 3 outlets — 1 has since joined this story.

Why it matters

Germany's flagship automotive industry is facing mounting pressure from cheaper rivals in key Asian markets and the expensive transition to new technologies. Established European manufacturers are struggling to protect their profit margins amid slowing demand and costly restructuring efforts.

By the numbers3

8,000job cuts

-0.5%profit margin low end

0.5%profit margin high end

How outlets cover it