BMW Bets on Hydrogen and a Slimmer Boardroom as Analysts Pare Back Targets

BMW will retire the 2 Series Active Tourer, add an entry-level EV and a new SAV above the X7, and targets a 3-5% EBIT margin in 2028.

BMW has confirmed it will retire the 2 Series Active Tourer without a successor, drawing a line under its conventional van-style offerings. The Munich carmaker disclosed the decision on Thursday, pairing it with plans to stretch its lineup in both directions: a fresh all-electric entry-level model aimed squarely at European buyers, and a new Sport Activity Vehicle (SAV) positioned above the current flagship X7.

The reshuffle channels resources toward higher-margin segments and battery-electric expansion, while the X3 M50 xDrive picks up a power bump — its straight-six now delivers 326 kW (443 PS).

Hydrogen Pipeline and a Leadership Handover

Infrastructure is moving in step with the product overhaul. On Wednesday BMW marked the symbolic start of construction on a roughly two-kilometre hydrogen pipeline serving its Leipzig plant, with completion and hook-up to the emerging core network slated for the first half of 2028. According to the company, Leipzig will become the world's first vehicle factory connected directly to a hydrogen grid, gradually decarbonising its paint shop and other production steps. The site thus takes a pioneering role within BMW's global manufacturing network when it comes to alternative energy carriers.

Personnel changes are underway too. On Thursday Frank Hager took charge of the Berlin plant and BMW Motorrad's worldwide production, succeeding Helmut Schramm, who retired.

Margin Targets and a Leaner Hierarchy

The operational tweaks sit alongside a broader reorganisation. At an investor day, management laid out a package of measures to shore up profitability, including a 20 percent reduction in management layers to shorten decision-making. BMW is also leaning harder on artificial intelligence in development and shifting more production closer to its regional markets.

Those steps respond to the heavy spending required to ramp up new technologies. Flatter hierarchies and pooled development resources are meant to hold down fixed costs and improve resilience against market swings.

For the Automotive segment, BMW is targeting an interim operating EBIT margin of 3 to 5 percent in 2028, before returning to a range of 8 to 10 percent by the early 2030s.

US Sales Edge Higher

North American business offered some ballast. BMW's US sales arm said Thursday it delivered 100,210 vehicles in the third quarter of 2026, a gain of 3.4 percent versus the same period a year earlier.

Analysts Stay Cautious

Despite the steady US volumes, market experts remain guarded. The tough environment in China in particular is weighing on hopes for a swift recovery in earnings power. For investors, the mix of high transformation costs and subdued sales expectations in Asia is a clear drag on the valuation of the Munich DAX group.

Deutsche Bank Research cut its price target for the stock to EUR 71 from EUR 78 on Thursday, keeping its "Buy" rating. Jefferies, according to media reports, reaffirmed its "Hold" call with a EUR 70 target on Wednesday following the capital markets day.

The shares closed Friday at EUR 54.62, down 0.8 percent on the day. Year to date, the stock has lost 42 percent.

Clarity on current trading should come with the next set of figures. BMW has scheduled the release of its third-quarter 2026 results for 4 November 2026.