BMW plans wider AI use and management cuts

BMW’s stated AI scope extends from development and purchasing to sales, marketing and aftersales.[1] The company says AI use can increase speed and agility, accelerate decision-making and improve efficiency.[1] Its process still assigns developers responsibility for monitoring, reviewing and finally approving results.[1] BMW and Mistral AI are also combining BMW engineering datasets with Mistral’s training capabilities to create specialised AI models.[1] Separately, BMW’s software-defined-vehicle program is intended to roll out more than 40 models by the end of 2027.[3]

BMW says it plans to make its management structures 20% leaner to improve efficiency and speed decision-making.[1] CNBC TV18 reports that BMW AG will cut its divisions and associated management roles by 20% by the middle of next year, with a further comparable reduction planned below senior management.[2] The report says BMW’s presentation described a target of reducing senior vice presidents by 20%, and that about 100 high-level jobs would go.[2] Bloomberg, as cited by CNBC TV18, reports a target affecting about 8,000 white-collar positions in Germany, roughly 5% of BMW’s global workforce.[2]

BMW aims to restore its automotive operating margin to 8%–10% by the start of the next decade, with an interim target of 3%–5% for 2028.[1] It says automotive-segment free cash flow should rise to at least €7 billion.[1] The company plans to focus on models delivering high customer value and long-term contribution margins in each market, and to review and reduce portfolio variants to improve profitability.[1] BMW says the 2 Series Active Tourer will not get a successor.[1] It plans a first BMW ALPINA model in 2027 and a fully electric Neue Klasse model for Europe’s entry segment in 2028.[1]

BMW plans to raise the share of locally manufactured vehicles developed for Chinese customer preferences to at least 95% by 2030.[1] BMW is also considering an additional offering above the X7 tailored to the U.S. market.[1] The regional moves come as BMW’s deliveries in China fell 20.4% in the first half of 2026, following a 12.5% decline in 2025, according to Heise.[4]