BMW’s ‘Neue Klasse’ Pre-Order Opener Lands Amid Deepest Margin Cut in Years

BMW moves i3 pre-orders to June 18, 2026, phases out older EVs in China, as profit warning slashes 2026 margin outlook to 1-3% and stock hits 52-week low.

BMW has brought forward the start of pre-orders for its next-generation i3 to June 18, 2026, hoping to inject some momentum into a stock that has been pummelled by a drastic profit warning. The First Edition of the i3 50 xDrive will carry a price tag of €75,340, with regular production due to begin in August. The move comes as the Munich-based automaker simultaneously winds down three older electric models in China to free up capacity for its new EV architecture.

The factory in Shenyang — operated through the BMW Brilliance Automotive joint venture — will stop building the iX1, the China-specific i3 G28, and the long-wheelbase i5 by the end of July. All three rely on BMW’s fifth-generation electric drivetrain, which is being retired in favour of the company’s “Neue Klasse” platform. The first Neue Klasse models destined for Shenyang are the iX3 L and a long-wheelbase i3 L. Retooling the plant for the new architecture involves an overhaul of production systems and digital infrastructure.

BMW’s decision to phase out the older models comes against a backdrop of sharply reduced expectations for 2026. The group now expects its automotive EBIT margin to land between 1% and 3%, down from an earlier target of 4% to 6%. The company blamed intensifying competition in China, its largest single market, together with higher energy costs related to the conflict in the Middle East. Delivery volumes are forecast to fall slightly below last year’s level.

The stock has taken a battering. At €60.76, the shares are roughly 37% below where they started the year, having touched a new 52-week low of €58.80 earlier in the week. A modest bounce on Friday lifted the price 1.6% to €60.96, though the 14-day relative strength index of 22.5 suggests the equity remains deeply oversold. To reclaim its 200-day moving average, the stock would need to climb nearly €23.

Reaction from the sell side has been divided. Goldman Sachs slashed its price target from €107 to €84 but kept a buy rating, arguing that the sell-off is overdone. Analyst Christian Frenes pointed out that BMW’s net liquidity now exceeds its entire market capitalisation — a striking anomaly for a company of its scale. UBS took a more cautious line, trimming its target to €70 with a “neutral” stance and cutting earnings-per-share forecasts by as much as 44%. The Swiss bank sees no meaningful recovery in Chinese operations before 2028. JPMorgan labelled the guidance cut a “wake-up call” for the whole European premium segment, saying manufacturers simply cannot compete on price in China.

There is at least one tailwind on the horizon: reports of possible EU tariffs on Chinese plug-in hybrids could ease competitive pressure on BMW’s home turf in the short term. Longer term, the success of the Neue Klasse will be decisive. Auto expert Ferdinand Dudenhöffer argues that BMW needs a fundamentally new business model — fewer models, lower costs — particularly as Chinese rivals such as Xiaomi prepare to bring cars like the YU7 to Europe from 2027. Whether the advance order intake for the i3, due in two weeks, can convince sceptical analysts will be an early test of whether the group’s bet on a clean-sheet electric architecture has paid off.