BMW Under Siege: Margins Slashed to 1-3%, Job Cuts on the Table as Stock Tumbles 37% YTD
20.06.2026 - 16:38:20 | boerse-global.de
The BMW share finished Friday with a modest gain, closing at €60.38, but that does little to mask the mounting pressure on Germany’s premier automaker. Over the past week, the stock has shed roughly 10%, and the year-to-date decline now stands at a punishing 37%. More alarmingly, the shares are hovering just above a fresh 12-month low of €58.80, with the relative strength index at 20.5 — deep in oversold territory — and the price nearly 28% below the long-term 200-day moving average.
The sell-off was triggered by a brutal profit warning in mid-June. Management now expects deliveries to fall this year, and the forecast for the automotive segment’s EBIT margin has been slashed to just 1% to 3%, down from a previous target of up to 6%. The dividend yield on capital is also set to shrink sharply, and the group’s pre-tax profit is expected to contract significantly.
Behind the numbers lies a deteriorating operational picture. Weak demand in China — where high energy costs and consumer reluctance are biting — has hammered BMW’s core business. The fallout is spilling into the broader European premium sector: rivals such as Mercedes have seen their shares slide to their lowest levels since autumn 2020.
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The pain is now forcing the board to consider drastic action. Chief executive Milan Nedeljkovi? has not ruled out headcount reductions, and the company is drawing up concrete cost-saving measures. The works council has confirmed that discussions over potential layoffs took place over the weekend, adding a new layer of uncertainty for investors.
Without fresh corporate catalysts until the half-year report due on 30 July, BMW’s stock is living off external data. The coming week will be pivotal, with a raft of key indicators due: the ACEA’s May passenger car registration figures on 23 June, flash purchasing managers’ indices for Germany and the eurozone on the same day, the Ifo business climate index on 24 June, and US consumer spending data on 25 June. Should European auto demand weaken further, the downward pressure on the share is likely to intensify.
For now, all eyes are on the €60 level. If that psychological support fails to hold, short sellers are expected to target the recent yearly low of €58.80, and the path lower could accelerate. The margin shock has shattered confidence, and the prospect of job cuts only deepens the uncertainty — leaving BMW’s stock facing its sternest test in years.
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