BMW warns car business could post operating loss

BMW warned on Tuesday that its core car business could post an operating loss in 2026, issuing its second profit warning for the financial year.

The German carmaker now expects the cars business to record a core profit margin between minus 0.5 percent and plus 0.5 percent. In June, BMW had expected a margin of between one and three percent, which was already lower than its forecast at the start of the year.

BMW cited costs linked to faster-than-expected job cuts and a production ramp-up. It said its redundancy programme was moving more quickly than expected, leading to higher-than-anticipated severance payments in the final quarter.

The Munich-based company also said strong demand for new models based on its Neue Klasse platform would bring costs for extra shifts.

BMW said car and motorbike deliveries this year are expected to fall more than previously expected. It delivered 2.46 million vehicles last year across BMW, Mini and Rolls-Royce. The company is due to report third-quarter results on Wednesday.