BMW Announces Restructuring Program to Improve Cost Structure
Bayerische Motoren Werke Aktiengesellschaft (ETR:BMW) outlined a restructuring program during its Q2 earnings call aimed at improving cost efficiency and supporting the company's strategic EBIT margin target of 8% to 10%. CEO Milan Nedeljković emphasized that the initiative focuses on changing operational methods rather than just cutting costs. The plan includes four pillars: sales and customer operations, organizational simplification, purchasing, and product development. The CFO, Walter Mertl, noted that restructuring measures have been agreed upon with Germany's works council and will begin discussions with affected employees in Q4 2026. BMW expects minimal cash outflows this year but anticipates financial effects starting in 2027. The company reaffirmed its EBIT margin target despite ongoing challenges in China, where profitability has declined compared to the previous year. Mertl also confirmed that BMW's Chinese joint venture remained profitable during Q2 and highlighted efforts already made to reduce costs in the region.