BMW Scraps Dual-Class Shares and Revs Up Alpina, but Stock Keeps Sliding

BMW shareholders approve conversion of preference shares into common stock, while the automaker deepens its bet on ultra-exclusive Alpina. Stock near yearly low amid leadership transition.

The BMW Group is pushing ahead with two of its most consequential strategic shifts in years — a full overhaul of its share structure and a deeper bet on the ultra-exclusive Alpina brand. Yet the market is looking the other way. The stock closed at €74.78 on Friday, shedding 2.43% on the day and extending its weekly decline to 8.56%. Since the start of the year, the shares have lost 22.04%, leaving them just 4.59% above the yearly low of €71.50 — a threshold that now looks dangerously close.

Shareholders approved the elimination of BMW’s long-standing two-class structure with near unanimity: 99.99% of common shareholders and 99.77% of preference shareholders voted in favour of converting all non-voting preference shares into common stock. The move becomes effective once the corresponding amendment to the articles of association is entered in the commercial register. CFO Walter Mertl has stressed that the simplification could boost BMW’s weighting in key indices, which typically track only common shares. Starting with the 2026 financial year, distributable profits will be allocated equally across all shares, ending a historical anomaly and making the equity easier for investors to evaluate.

The dividend for the 2025 business year, set at €4.40 per share for both classes, will be paid out on May 19. The ex-dividend date was May 14, contributing to part of the recent price weakness — but only part.

The leadership handover has also been completed. Oliver Zipse passed the CEO baton to Milan Nedeljkovi? on May 14, and Nedeljkovi?’s contract runs through 2031. Michael Nikolaides has stepped into the role of strategy chief, rounding out a management team that now faces the challenge of aligning model policy, electrification, and margin discipline.

Amid the structural and personnel changes, BMW is sharpening its focus on the luxury end of the market. Under the banner “Vision BMW Alpina” and the motto “Speed, Refined,” the company is laying out plans for the newly integrated performance brand. Alpina’s independence will be preserved, but BMW will exploit internal synergies to target customers who prize technical perfection and understated sportiness. The global automotive market is expected to shrink slightly this year, and geopolitical tensions and trade risks are weighing on business. In that environment, exclusive, high-priced models are crucial to protecting margins. Alpina, which will combine conventional and electric drivetrains with bespoke chassis tuning and top-tier build quality, extends BMW’s and Mini’s portfolio upward.

On the financial front, the company is sticking to its operating margin target of 8% to 10% for the automotive segment — a benchmark that UBS, after an information session with CFO Mertl, considers achievable. At the same time, BMW has confirmed a 2026 prognosis that envisions an automotive operating margin of between 4% and 6%, reflecting the range of outcomes the company is preparing for. The next major catalyst will be a capital markets day at the end of September, where the new leadership is expected to translate the simplified share structure and the Alpina strategy into measurable financial goals.

For now, the dividend has passed, and the structural overhaul is in motion. The market is waiting for proof that all these moves will translate into earnings resilience. With the stock flirting with its yearly low, the pressure on Milan Nedeljkovi? and his team is already building.