{"id":64824,"date":"2026-07-31T10:50:19","date_gmt":"2026-07-31T10:50:19","guid":{"rendered":"https:\/\/www.europesays.com\/germany\/64824\/"},"modified":"2026-07-31T10:50:19","modified_gmt":"2026-07-31T10:50:19","slug":"bmw-reviews-untouchable-operations-as-profit-slumps","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/germany\/64824\/","title":{"rendered":"BMW reviews ‘untouchable’ operations as profit slumps"},"content":{"rendered":"

German automakers’ challenges appear to be deepening, with BMW now reviewing actions once considered “untouchable” as it works to restore profitability and reposition the brand.<\/p>\n

First things first: CEO Milan Nedeljkovic made the pledge Thursday after the automaker reported a 35% drop in second-quarter pretax profit, underscoring the mounting pressures facing Germany’s auto industry, Reuters reported.<\/p>\n

BMW’s pretax profit fell to \u20ac1.7 billion ($1.95 billion<\/a>), while the operating margin in its core automotive business narrowed to 2.3% from 5.4% a year earlier, slightly ahead of the initial 2.2% forecasted by analysts.<\/p>\n

The automaker attributed the earnings decline to a sharp drop in China sales and weaker consumer confidence tied to the conflict in the Middle East.<\/p>\n

What they’re saying: “The automotive industry is faced with rapidly escalating challenges \u2014 intense global competition, increasing regional regulatory requirements and the implications of geopolitical conflicts will shape our business model in the years ahead,” said Nedeljkovic, adding, “We are taking a critical look at how we work, including revisiting core processes and structures that previously were considered untouchable.”<\/p>\n

Why it matters: BMW’s efforts to improve profitability could influence future investments in products and manufacturing, making it important for dealers to monitor the changes as they plan inventory, operations and customer expectations.<\/p>\n

OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK<\/p>\n

Get insights trusted by 55,000+ car dealers. Free, fast, and built for automotive leaders.<\/p>\n

Between the lines: BMW’s latest actions are part of a broader effort to restore profitability after lowering its automotive margin forecast to 1%-3%<\/a> in June, down from its previous outlook of 4%-6%.<\/p>\n

The automaker plans to reduce its global workforce by about 8,000 employees<\/a>, or roughly 5% of its 150,000-person workforce.<\/p>\n

BMW has also expanded its use of humanoid robots<\/a> at its South Carolina plant to sort parts, improving manufacturing efficiency and helping reduce production costs.<\/p>\n

Bottom line: Efforts to turn BMW around come as the company rolls out what is arguably its most significant product strategy in decades through its Neue Klasse platform, beginning with the all-new electric iX3. <\/p>\n

The restructuring also reflects the broader pressures facing German automakers as they balance cost-cutting with major product investments, making stable vehicle availability for dealers key right now.<\/p>\n

A quick word from our partner<\/p>\n

\"\"<\/a>\"\"<\/a><\/p>\n

Running a dealership is hard.<\/p>\n

Between vendor strategy, process management, market timing, and hiring, one wrong decision can cost hundreds of thousands.<\/p>\n

That\u2019s why we created CDG Circles.<\/p>\n

It\u2019s not a 20 Group. Circles connects you with top operators across brands through confidential text-based chats \u2014 giving you daily intel, real-world feedback, and instant answers from people who actually live it.<\/p>\n

Ask questions 24\/7 and get real-time responses from experienced dealers in curated peer groups built specifically for your level and store type.<\/p>\n

No vendors. No sales pitches. No travel. Just real operators helping each other win.<\/p>\n","protected":false},"excerpt":{"rendered":"German automakers’ challenges appear to be deepening, with BMW now reviewing actions once considered “untouchable” as it works…\n","protected":false},"author":2,"featured_media":64825,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20955],"tags":[6213,94,9056,42],"class_list":["post-64824","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bmw","tag-bmw","tag-business","tag-media","tag-news"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/64824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/comments?post=64824"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/64824\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media\/64825"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media?parent=64824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/categories?post=64824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/tags?post=64824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}