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BMW Reports Profit Decline and Warns of Future Challenges

Published July 30, 2026 at 5:01 PM UTC

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BMW, the German luxury automaker, has reported a significant decline in profits for the first half of 2026, attributing the downturn primarily to a sharp drop in sales in its largest market, China. The company's operating profit before interest and taxes (EBIT) fell by 37% to €3.635 billion, marking the lowest level since the COVID-19 pandemic. Net profit decreased by 28.5% to €2.9 billion, and revenue declined by 8% to €362.266 billion. The automotive segment was particularly affected, with the EBIT margin dropping to 3.6% from 6.2% in the same period last year. BMW also announced plans to cut approximately 8,000 jobs worldwide by the end of 2027 as part of a cost-saving strategy aimed at reducing expenses by €31 billion annually starting in 2028. CEO Milan Nedeljković emphasized the need for agility and efficiency in adapting to an increasingly challenging environment, citing global competition and geopolitical conflicts as significant factors impacting the automotive sector. The company is focusing on internal restructuring and efficiency measures to navigate these challenges.