BMW third-quarter profit falls 15% as China competition bites
BMW's second profit warning of 2026 comes alongside an 8,000 job-cut restructuring plan and steep falls in China deliveries.
Key facts
Story- BMW's third-quarter net profit fell 15% year on year to 1.45 billion euros
- Its China deliveries fell 24.8% in the quarter; global deliveries fell 6.3%
- The carmaker now expects a profit margin of between -0.5% and 0.5% this year
BMW's net profit for the third quarter fell 15% from a year earlier, to 1.45 billion euros, the German luxury carmaker reported on Wednesday. The results came a day after BMW issued its second profit warning of 2026.
The company said its vehicle deliveries in China fell 24.8% during the quarter. Deliveries worldwide dropped 6.3%. BMW has cut its profit margin forecast for the full year to between -0.5% and 0.5%.
BMW blamed the weaker result on the cost of a restructuring programme that includes significant job losses. The programme covers about 8,000 jobs. Rising costs and weaker demand in China also weighed on the business.
Pressure from Chinese rivals
Chinese automakers are competing hard with Western brands in their home market. Western carmakers have struggled to match the lower prices of local rivals in China. That has cut their sales there and pushed more cars into exports to Europe.
Mercedes-Benz cut its profit outlook last week, making it the latest German carmaker to lower its forecast.
BMW has not said when the job cuts will be completed. It has not said how the restructuring will affect its car prices or launches.
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