Factbox-Key points of BMW's strategy update

FRANKFURT, Sept 30 (Reuters) - BMW is ‌holding a two-day capital ​markets ​event to brief investors about the premium carmaker's strategy, the first for new CEO Milan Nedeljkovic, who took over in May.

Here are the main points of ‌the update:

TARGETS

- The group aims for an 8% to 10% automotive profit ⁠margin by the start of the next decade and automotive free cash flow of more than €7 billion ($8 billion). That ‌compares with 2026 targets of 1% ‌to 3% and more than €2.5 billion, respectively

- In 2028, the group expects an operating margin of 3% to 5% as an interim target, with free cash flow of more ​than €5 billion

- The group plans to reduce model variants across its portfolio, and there will be no successor to the BMW2 Series Active Tourer

- By mid-2027, BMW will cut ⁠the number of divisions and related management roles by 20%, "with a comparable reduction at the organisational levels below"

CHINA

- In China, local ​production of high-volume categories will be expanded, while imports will be limited to models with the highest profit margins

- BMW aims to raise the ​share of locally manufactured vehicles specifically tailored to Chinese ‌customer preferences to at least 95% by 2030. The current level is "just under 90%", it said

- BMW is considering expanding exports of vehicles made ⁠in China to Southeast Asian markets

US

- BMW plans to expand its luxury SUV offering with a new model positioned above its current top-end BMW X7 series

- With its Spartanburg plant in South Carolina operating ⁠at full capacity due to the popularity of luxury SUVs, BMW is striving for "greater regionalisation" to expand global ​production of these models in other sales regions

EUROPE

- BMW plans to introduce a new entry-segment fully electric model from the Neue Klasse range in 2028

ARTIFICIAL INTELLIGENCE

- BMW plans to significantly expand the role of AI ‌in its value chain

- In future, AI is expected to provide end-to-end support, from "initial technical requirements to testing and release"

AUTONOMOUS DRIVING

- BMW will ‌offer navigation-guided driver assistance in Germany based on the DCAS regulation, with other countries following in stages, ⁠such as the US

CRITICAL MATERIALS

- The company ‌will focus on new partnerships, ​including with competitors within the European Union, to secure supplies of critical raw materials and components, including semiconductors

($1 = 0.8807 euros)

(Compiled by Christoph Steitz. Editing by ‌Mark Potter)

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