BMW Names New Labor Chief as China Sales Tumble and Profit Guidance Gets Slashed
Published on 07/18/2026 at 13:12 | Redaktion boerse-global.de
The contrast between BMW’s performance in its two largest regions could hardly be starker. While deliveries rose 5% in Europe and 4% in the US during the first half, the Chinese market went into a tailspin — sales slumped 20.4% to 261,800 vehicles, with the second quarter alone posting a 30.2% plunge. The group’s shares have absorbed the blow, closing at €58.40 on Friday, just 3% above the 52-week low of €56.72 touched on July 15, and down 37.41% since the start of the year.
That divergence now sits at the heart of a leadership reshuffle. The supervisory board has appointed Dorothea von Boxberg, until recently CEO of Brussels Airlines and previously CEO and CFO of Lufthansa Cargo, to the management board as labor director effective September 1, 2026. She replaces Ilka Horstmeier, who is stepping down early from her role overseeing personnel and real estate. The timing is no coincidence: BMW is in the midst of a cost-cutting drive that, according to media reports, could involve the elimination of up to 7,500 positions. Chairman of the supervisory board Nicolas Peter cited von Boxberg’s experience in corporate transformation and her outside perspective, while CEO Milan Nedeljkovi? — himself only eight weeks into the top job — will now rely on her to steer negotiations with the works council, which sources say are expected to conclude by the end of July.
The personnel move follows a sharp downgrade in financial expectations. In June, BMW slashed its forecast for full-year 2026 operating margin in the automotive segment to 1%–3%, down from the earlier 4%–6% target. The group cited weak demand in China, the Middle East conflict, higher energy costs and reduced consumer confidence. Net profit is now more than halved compared with 2022 levels, according to industry reports. Despite the pressure, BMW is holding firm on its financial commitments: free cash flow in the automotive division is still seen exceeding €2.5 billion, the dividend payout ratio of 30%–40% remains intact, and the ongoing share buyback program continues.
Should investors sell immediately? Or is it worth buying BMW?
Not all news is downbeat. Electrified vehicle sales rose 0.8% in the second quarter to 162,870 units, driven by a 38% surge in Europe to 81,400 vehicles, where the new iX3 has already reached a record sales level. The all-electric SUV also earned a five-star Euro NCAP crash-test rating. The MINI brand enjoyed a strong first half, with deliveries up 17.1% to 81,035 units. On the technology front, BMW has joined Toyota, Bosch and oil company Repsol in a six-month pilot program in Spain using Nexa 95, a renewable fuel made from used cooking oil and agricultural waste, aiming to cut CO? emissions from combustion engines without engine modifications or new infrastructure — a potential lifeline ahead of the planned EU combustion-engine ban in 2035.
Analysts are starting to look past the immediate pain. HSBC upgraded BMW from “hold” to “buy” with a price target of €71, implying roughly 21% upside from current levels. The bank sees the new “Neue Klasse” electric platform, which debuts with the iX3, as the key to restoring margins. In Europe, the iX3 already accounts for one in three orders of fully electric BMW models, and demand has forced the company to add a second shift at its Debrecen plant in Hungary earlier than planned. Investors will get the next hard look at the numbers on July 30, when BMW reports second-quarter and first-half results, offering a clearer picture of whether cost cuts and the iX3 ramp-up can offset the deepening China slump.
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