BMW's New Chief Inherits a 5% Margin as Shares Languish Near Yearly Lows

Milan Nedeljkovi? takes over BMW amid a 27% stock drop, weak EV sales, and falling margins; the stock hovers near €70 support with technical signs oversold.

Milan Nedeljkovi? took the helm at BMW in mid-May with a clear mission: steer the "Neue Klasse" electric-vehicle platform to market and halt a slide that has erased nearly 27% of the company's stock value since January. The share price closed Friday at €70.28 — just €0.36 above its 52-week trough of €69.92, a low struck on June 4. The 200-day moving average of €84.76 now sits more than 17% above the current level, underscoring the depth of the bearish trend.

Nedeljkovi?, who previously ran BMW's production network, inherits a balance sheet that reflects the industry's broader pain. First-quarter revenue fell 8.1% to around €31 billion, pre-tax profit slumped by a quarter, and the automotive operating margin contracted to just 5.0%. Global deliveries slipped 3.5% to roughly 566,000 units, with only European EV sales showing meaningful growth. Management nonetheless maintained its full-year outlook.

The technical picture offers little comfort. The relative strength index of 28.9 signals an oversold condition that could trigger a bounce, but the stock would first need to defend the psychological €70 mark on a closing basis. A break below that level would put the 52-week low directly in play. The weekly loss of 6.27% extended a run that has left the share price far below its longer-term averages.

BMW is not alone in its struggles. An EY analysis of the first quarter of 2026 showed that while the global automotive market grew roughly 2% in revenue terms, German manufacturers as a group saw sales shrink 4%. Japanese and American rivals gained ground, and Chinese competitors continue to pile on pricing pressure. Weak demand in the US and China, a sluggish EV ramp-up, and soaring software-development costs are squeezing margins across the sector.

The company is responding by shifting production weight eastward. A €2 billion factory in Debrecen, Hungary, is taking shape, lured by lower energy costs and a lighter regulatory burden. That move threatens Germany's manufacturing base: the VDA auto industry association forecasts the loss of up to 125,000 domestic jobs by 2035. BMW itself still built over one million vehicles in Germany in 2025, but future capacity growth lies abroad.

One small bright spot arrived on the racetrack, where BMW Motorrad's Endurance Team won the 8-hour race at Spa. The victory was overshadowed by the death of Herbert Schnitzer, a figure who shaped the company's motorsport legacy for decades and passed away on Friday. Schnitzer's name is woven into BMW's racing DNA, a heritage that contrasts sharply with the financial headwinds the carmaker now faces.

Nedeljkovi? must now prove he can reverse the margin decline and revive momentum in China, BMW's single most important market. If he cannot, analysts warn the stock could slide below €69 — a level that would mark new ground on the downside and deepen the sense of crisis surrounding a storied automaker.