BMW Germany lowers its 2026 financial forecast and will "significantly strengthen and accelerate" cost-cutting measures

Glonghui, June 17th—German automaker BMW lowered its 2026 financial forecast on Tuesday due to accelerated declines in key markets and the impact of the Iran war. BMW stated that the conflict has hit consumer confidence and pushed up energy costs. This statement underscores that Europe’s automotive industry, already battered by intense competition in Asia and weak domestic demand, is also highly sensitive to overseas developments.BMW now expects the profit margin of its core automotive division to be between 1% and 3% in 2026, down from the previous forecast of 4% to 6%. Core deliveries are also expected to decline slightly, compared with the earlier forecast of remaining flat. The company anticipates a significant drop in pre-tax profit; by BMW’s definition, this means a decrease of more than 15%. The prior forecast was for a moderate decline. On Tuesday, BMW shares closed down 0.64% in Frankfurt.BMW CEO Milan Nedeljković said the company will therefore “significantly strengthen and accelerate” cost reduction measures, adding that it will “adjust existing structures and processes to address the sharp deterioration in market conditions.” BMW did not disclose specific details, only indicating that these measures will lead to a one-time negative impact in the second half of 2026.