BMW

BMW’s product story is strengthening, but its margin story is deteriorating, with China the largest source of the gap.

BMW’s technology-open strategy has preserved a coherent, desirable lineup through the first phase of the EV transition, while Neue Klasse offers a credible path to advance both its technology base and BMW character.

Those product strengths are not yet translating into durable pricing power or target-level economics. Contraction and repricing in China’s auto market are a major reason; tariffs, currencies, higher depreciation and amortization, and commodity costs add pressure.

BMW retains the balance-sheet capacity, global production flexibility, and cost discipline to keep investing. Management is also pursuing a faster, leaner operating model across retail, sourcing, decision-making, and engineering. Those strengths give BMW room to act; the operating changes are aimed at closing the gap between its strengthening product case and deteriorating economics.