Summary
BMW says strong demand for its Neue Klasse models is prompting an earlier production ramp-up and faster phase-out of selected older vehicle and technology generations. It has lowered its 2026 Automotive Segment EBIT margin forecast to -0.5% to +0.5%, while expecting a margin above 2% before portfolio and structural measures.
BMW Group says it will accelerate the production ramp-up of its Neue Klasse vehicles and intensify organisational changes, including phasing out selected older vehicle and technology generations earlier. The announcement, made on 4 November 2026, also came with a sharply lower 2026 forecast for the Automotive Segment’s reported EBIT margin, partly reflecting the cost of those measures.
Neue Klasse ramp-up brings an earlier model transition
BMW says sustained strong demand for Neue Klasse models has led it to introduce additional production shifts earlier than planned. The faster ramp-up creates an opportunity to begin phasing out previous vehicle and technology generations sooner, including selected models based on its Gen5 battery technology.
The Neue Klasse includes technology clusters such as Gen6, which BMW expects to support profitability improvement through innovation and greater cost efficiency. The company says the technology is already available in models including the BMW iX3, i3, i7, iX4 and iX5, and will be rolled out to more models in the coming months. The announcement does not detail the engineering changes in Gen6 or identify which Gen5-based models will be phased out.
The figures show the wider sales context for the transition: fully electric vehicles accounted for 20% of BMW Group sales in the third quarter, while battery-electric and plug-in hybrid vehicles together made up 27.4%. The Group delivered 551,075 vehicles in the quarter, 6.3% fewer than a year earlier.
BMW is also speeding up parts of its internal reorganisation. It says reductions in management functions will be implemented faster than previously announced, alongside broader changes to organisational structures and processes.
Restructuring costs weigh on the 2026 margin outlook
BMW now expects a full-year reported EBIT margin of -0.5% to +0.5% for its Automotive Segment, compared with its previous forecast of 1% to 3%. EBIT is profit before financial result, and the EBIT margin expresses that profit as a share of revenue. The company expects the margin to be above 2% before the impact of portfolio and structural measures.
BMW says the expanded measures will affect the segment’s operating result in the fourth quarter. Its full-year guidance includes an estimated adverse impact of around 2.5 percentage points from portfolio and structural measures. The company also cites approximately 1.25 percentage points from increased tariffs and 1.2 percentage points from depreciation and amortisation of BBA assets resulting from purchase price allocation.
The distinction between the reported forecast and the figure before portfolio and structural measures is important: BMW expects the measures to weigh on this year’s reported margin while positioning the business for its planned product and organisational transition. The company continues to expect Automotive Segment free cash flow above €2.5 billion for 2026.