BMW is setting new return targets and planning a model above the X7

According to an analyst report, the new BMW boss Nedeljkovic is relying on greater localization and fewer models. The group has set a new interim target for returns.

BMW boss Nedeljkovic: The return should increase again in stages. Photo: Sven Hoppe/dpa

Munich. The German car manufacturer BMW has updated its strategy and set new goals. At the current Capital Markets Day, BMW CEO Milan Nedeljkovic and CFO Walter Mertl explained the course for the coming years to analysts and investors.

As an analyst report on Wednesday shows, BMW wants to stick to its self-imposed target of an EBIT margin in the car segment of eight to ten percent. Given the current difficult situation of the group and the entire automotive industry, the company is still taking its time.

This mark is expected to be achieved at the beginning of the next decade. The group has set itself an interim goal of a return of three to five percent by 2028. The car manufacturer is currently still a long way from achieving this. For the coming year, BMW is forecasting a margin in the car business of one to three percent.

Free cash flow is also expected to recover in stages. In two years it should be at least five billion euros, and at the beginning of the next decade it will be more than seven billion.

This Wednesday, the manufacturer is continuing its capital market day.

According to Bernstein analyst Stephen Reitman, BMW wants to fundamentally reposition itself. Growth should therefore come in the future in a segment that BMW has not yet occupied. In the USA, BMW is planning to launch a model above the luxury SUV X7. In China, the car manufacturer wants to focus more on localization.

BMW boss Milan Nedeljkovic has made it clear that he is not just interested in savings, said Reitman. Rather, BMW is fundamentally reorganizing itself when it comes to developing cars, selling them, purchasing components and working with partners.

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