BMW Redraws Its Lineup and Its Org Chart as Analysts Trim Targets

BMW plans to drop the 2 Series Active Tourer, trim management layers 20% by mid-2027, and targets a 3-5% EBIT margin in 2028.

BMW has confirmed it will retire the 2 Series Active Tourer without a successor, part of a broader push to shed traditional van-style models and steer resources toward higher-margin segments and electric mobility. The announcement came alongside plans to stretch the portfolio in both directions: a new fully electric entry-level model aimed squarely at European buyers, and a fresh Sport Activity Vehicle positioned above the current X7 flagship.

The lineup overhaul arrived in the same week BMW laid out the cornerstones of its medium-term strategy. In the Automotive division, the company is targeting an operating EBIT margin of 3% to 5% as an interim goal for 2028, with a return to the 8% to 10% range envisioned by the early 2030s, supported by an ambition of more than EUR 7 billion in free cash flow.

Management Layers to Shrink by a Fifth

Getting there requires visible surgery on the cost base. By mid-2027, BMW intends to cut the number of divisions and associated management functions by 20%. Further decisions on the future shape of the model range are slated for spring 2027.

Production infrastructure is being reshaped in parallel. Construction began this week on a roughly two-kilometer hydrogen pipeline connecting the Leipzig plant to the future core network, with commissioning targeted for the first half of 2028. According to BMW, Leipzig would become the world's first vehicle factory directly linked to a hydrogen grid.

There was product news as well: the X3 M50 xDrive was presented with an upgraded inline-six delivering 326 kW (443 PS).

Analysts Divided After Capital Markets Day

Equity analysts recalibrated their models in the wake of the strategy update, and the responses diverged. Deutsche Bank Research lowered its price target on Thursday to EUR 71 from EUR 78 while keeping its "Buy" rating. Analyst Tim Rokossa tied the revision to a more cautious view on an industry-wide recovery, but pointed to BMW's in-house efficiency programs as a source of meaningful relief the company can generate on its own.

Jefferies, according to media reports, confirmed its "Hold" rating on Wednesday following the capital markets day, with a price target of EUR 70.

The stock closed Friday at EUR 54.62, leaving it down 42% since the start of the year. Investor restraint has lately reflected the debate over future earnings power after the company set new targets at its capital markets day.

Buybacks and the Calendar Ahead

Alongside the restructuring, BMW is leaning on share repurchases. Under the third tranche of its buyback program, the company acquired more than one million of its own common shares at the end of September — a move that underpins the shareholder structure during a phase of deep repositioning.

Attention now shifts to upcoming operational disclosures. BMW will host a pre-close call on third-quarter business development on October 12. The full quarterly statement, with a reporting date of September 30, is scheduled for release on November 4. Those dates will show how far the announced efficiency measures have already stabilized day-to-day operations.