{"id":496071,"date":"2026-06-16T19:30:10","date_gmt":"2026-06-16T19:30:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/496071\/"},"modified":"2026-06-16T19:30:10","modified_gmt":"2026-06-16T19:30:10","slug":"bmw-downgrades-2026-targets-on-mideast-war-china-woes","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/496071\/","title":{"rendered":"BMW downgrades 2026 targets on Mideast war, China woes"},"content":{"rendered":"

\"BMW BMW downgraded forecats, the latest bad news from Germany’s auto sector (Kirill KUDRYAVTSEV) \u00b7 Kirill KUDRYAVTSEV\/AFP\/AFP <\/p>\n

German carmaker BMW downgraded its 2026 targets Tuesday due to turmoil from the Middle East war and\u00a0worsening business in key market China, and vowed to step up cost-cutting efforts.<\/p>\n

It is the latest bad news from Germany’s ailing auto sector, and a major blow for a manufacturer which had so far endured industry upheaval better than its peers Volkswagen and Mercedes-Benz.<\/p>\n

Munich-headquartered BMW said it now expects a “significant” decrease in pre-tax profit this year, against a previous expectation for only a moderate decrease.<\/p>\n

It forecast a slight fall in vehicle deliveries, compared to a previous prediction for them to remain stable.<\/p>\n

And profit margins in its auto division — closely watched as a measure of the company’s overall health \u00e8\u00e8 will come in between one to three percent, down from an earlier expectation of four to six percent.<\/p>\n

CEO Milan Nedeljkovic said BMW would “adapt our current structures and processes to the drastic downturn in market conditions”.<\/p>\n

“It is our entrepreneurial responsibility… to significantly intensify and accelerate our ongoing measures,” he added in a statement.<\/p>\n

He did not give further details, but the group said cost-cutting would hit its earnings in the second half of 2026.<\/p>\n

Giving reasons for the downgrades, BMW said problems in China — where it faces fierce competition from local rivals and a sluggish market \u00a0— “accelerated further in the second quarter, particularly for non-electric vehicles”.<\/p>\n

“Positive sales volume development in Europe and the US cannot offset the decline in sales in China and the Asia-Pacific region,” it said.<\/p>\n

In addition, the impact of the US-Israeli war against on Iran was worse than originally feared, it added.<\/p>\n

High energy prices were weighing on the group and global instability was hitting consumer sentiment worldwide, the company said.<\/p>\n

The United States and Iran announced a deal this week to end the conflict, and ships have again begun passing through the Strait of Hormuz, a key energy route.<\/p>\n

BMW was able to weather the US tariff blitz better than its rivals in large part because its biggest plant worldwide is in the US state of South Carolina.<\/p>\n

Profits at the carmaker, whose brands also include Mini and Rolls-Royce, held up relatively well in 2025 compared to VW and Mercedes.<\/p>\n

sr\/bst\/rmb<\/p>\n","protected":false},"excerpt":{"rendered":"BMW downgraded forecats, the latest bad news from Germany’s auto sector (Kirill KUDRYAVTSEV) \u00b7 Kirill KUDRYAVTSEV\/AFP\/AFP German carmaker…\n","protected":false},"author":2,"featured_media":496072,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[27559,93899,114,1657,170,85,46,87747],"class_list":["post-496071","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-auto-sector","tag-bmw","tag-business","tag-china","tag-germany","tag-il","tag-israel","tag-kirill-kudryavtsev"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/496071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=496071"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/496071\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/496072"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=496071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=496071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=496071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}