BMW is preparing for a leaner future, with artificial intelligence, fewer management layers and a smaller model portfolio at the centre of its latest strategy.

Following its Capital Market Day, BMW confirmed it will reduce the number of divisions and associated management positions by 20 percent by the middle of 2027, with comparable reductions at lower organisational levels. The move is separate from the voluntary severance programme already agreed with the Works Council.

AI will play a major role in making the company more efficient. BMW plans to expand its use across development, purchasing, production, sales, marketing and aftersales. In vehicle development, AI agents will increasingly support technical requirements, testing and release processes while automating routine work and analysing complex information faster.

The changes will also affect what BMW actually sells. The company is reducing model variants and has confirmed that the 2 Series Active Tourer will not receive a successor when the current generation ends production. BMW says other models are also being assessed as it focuses resources on more profitable products.

For Europe, however, there is also something new on the horizon. BMW has confirmed a fully electric entry level model focused on the European market, due in 2028 as part of its wider Neue Klasse expansion.

The company is targeting an automotive EBIT margin of 3 to 5 percent in 2028, before returning to its longer term goal of 8 to 10 percent early in the next decade.

BMW’s message is becoming clear: fewer variants, leaner management and much greater use of AI, while concentrating its resources on the models and technologies it believes will matter most.