BMW to produce electric vehicles and luxury SUVs amid declining profits
BMW intends to cut staff, including management positions, work more with artificial intelligence, as well as introduce two new models. This is part of the company's reorganization plan.
BMW to start production of electric vehicles and luxury SUVs amid declining profits
According to the agency, the European automotive industry remains under the influence of weak demand, pressure from Chinese manufacturers, and US tariffs. In June, BMW issued its third warning in over three years regarding a decline in profits due to weak results in China, which damaged the reputation of the company usually known for its stability, Reuters reported.
In this situation, BMW has launched a reduction program in Germany that is expected to affect nearly 8,000 jobs. With this, the company has joined Volkswagen and Mercedes-Benz in cutting costs. BMW plans to reduce the number of divisions and associated management positions by one-fifth by mid-2027. Artificial intelligence will be the main tool in optimizing processes and accelerating decision-making.
In addition, BMW is adapting its product strategy to different directions of key markets:
Europe — plans are in place to launch the production of an affordable entry-level electric vehicle starting from 2028;
USA — developing a new luxury SUV for wealthy clients;
China — continuing the localization of production and cooperating more actively with local partners, including on autonomous driving technologies and integrated software.
The possibility of exporting cars from China to Southeast Asian countries is also being considered.