BMW Group has announced a major restructuring programme, including voluntary severance packages for about 8,000 employees in Germany, as the premium carmaker responds to mounting pressure from slowing demand in China, intensifying global competition and geopolitical uncertainty.
The restructuring follows an agreement between BMW AG and its General Works Council and forms part of a broader strategy to simplify operations, reduce costs and improve competitiveness.
‘Rapidly escalating challenges’
“The automotive industry is faced with rapidly escalating challenges – intense global competition, increasing regional regulatory requirements and the implications of geopolitical conflicts will shape our business model in the years ahead. That’s why it’s important to be lean and agile,” said BMW AG chairman of the board of management Milan Nedeljković.
The German manufacturer reported that group earnings before tax (EBT) for the first six months of 2026 declined by 29.4% to €4.05 billion (R77.2billion), while second-quarter EBT dropped 35.1% to €1.7 billion (R32.4billion). Group revenues also fell 8% year-on-year to €62.3-billion.
The decline was largely driven by a sharp slowdown in China, where deliveries plunged 20.4% during the first half of the year and more than 30% in the second quarter.
Overall global deliveries fell 4.2% to 1.16 million BMW, MINI and Rolls-Royce vehicles.
Locally, BMW Group South Africa remains one of the country’s leading premium vehicle manufacturers despite the global headwinds facing the group. According to NAAMSA data, the company delivered 7,948 BMW and MINI vehicles in South Africa during the first six months of 2026.
Despite the weaker financial performance, BMW recorded stronger sales in Europe and the United States, with Europe growing 5.4% and the US rising 3.9% during the first half of the year.
Electric vehicle strategy in full swing
The company is also pressing ahead with its electric vehicle strategy. Nearly one in every five vehicles delivered globally during the second quarter was fully electric, while the new BMW iX3 — the first model based on the Neue Klasse platform — has already attracted more than 100,000 customer orders since sales opened. Early demand for the upcoming BMW i3 has also been described as strong.
Chief financial officer Walter Mertl said BMW would intensify efficiency measures after already achieving €2.5-billion (R47.6-billion) in cost savings last year.
“Our goal is to reduce complexity and establish a sustainably lower cost base,” he said, adding that digitalisation and artificial intelligence were helping shorten vehicle development cycles and improve productivity.
Cost-cutting measures all round
The restructuring comes as premium manufacturers, including Mercedes-Benz, Audi, Porsche and Volvo Cars, continue to implement cost-cutting measures to navigate slowing global demand, rising electrification costs and growing competition from Chinese manufacturers.
Sunday World Motoring approached BMW Group South Africa for comment on whether the restructuring and planned reduction of approximately 8,000 jobs in Germany would have any implications for BMW Group Plant Rosslyn or the company’s national sales headquarters in Midrand.
BMW Group South Africa head of business communications, Angela Konert, said: “The agreement presented applies exclusively to BMW AG in Germany and is the result of negotiations with the General Works Council (Gesamtbetriebsrat).
“No corresponding negotiations have taken place at locations outside Germany. We will not comment on any potential measures at international locations and, as a matter of principle, do not engage in speculation about future decisions.”
BMW maintained its financial guidance for 2026, although it expects a significant decline in group earnings before tax and a slight decrease in vehicle deliveries compared with last year.
ALSO READ: BMW Rosslyn Plant celebrates 100,000 new generation X3s
- BMW Group plans a major restructuring including voluntary severance for around 8,000 employees in Germany to address slowing demand, global competition, and geopolitical uncertainty.
- First half of 2026 earnings before tax fell 29.4% to €4.05 billion, with revenues down 8%, mainly due to a 20.4% delivery drop in China.
- Sales increased in Europe (+5.4%) and the US (+3.9%), while global deliveries declined 4.2% to 1.16 million vehicles.
- BMW is advancing its electric vehicle strategy, with nearly 20% of vehicles delivered in Q2 being fully electric and strong demand for BMW iX3 and the upcoming i3.
- The restructuring affects only Germany; BMW South Africa reported no expected impact on local operations and reaffirmed 2026 financial guidance despite anticipated earnings decline.
BMW Group has announced a major restructuring programme, including voluntary severance packages for about 8,000 employees in
“
Overall global deliveries fell 4.2% to 1.16 million BMW, MINI and Rolls-Royce vehicles.
Locally, BMW Group
Despite the weaker financial performance, BMW recorded stronger sales in Europe and the United States, with Europe growing 5.4% and the US rising 3.9% during the first half of the year.
Chief financial officer Walter Mertl said BMW would intensify efficiency measures after already achieving €2.5-billion (R47.6-billion) in cost savings last year.
“Our goal is to reduce complexity and establish a sustainably lower cost base,” he said, adding that digitalisation and artificial intelligence were helping shorten vehicle development cycles and improve productivity.
BMW Group
"No corresponding negotiations have taken place at locations outside
BMW maintained its financial guidance for 2026, although it expects a significant decline in group earnings before tax and a slight decrease in vehicle deliveries compared with last year.
ALSO READ: BMW Rosslyn Plant celebrates 100,000 new generation X3s
