BMW Taps Brussels Airlines Veteran as China Sales Free-Fall and Profit Warning Triggers 7,500 Job Cuts
Published on 07/18/2026 at 13:23 | Redaktion boerse-global.de
The crisis in China has forced BMW into a restructuring that brings a proven cost-cutter to its boardroom. Dorothea von Boxberg, most recently at Brussels Airlines, is set to join the Munich-based automaker's executive board for human resources, tasked with eliminating up to 7,500 positions. A company-wide meeting scheduled for late July in Munich will unveil the details of the downsizing plan, as the group scrambles to stem a profit slide exacerbated by a deepening Chinese sales collapse.
While BMW posted gains in Europe and the United States during the first half of 2026, the Chinese market inflicted heavy damage. Globally, deliveries fell 4.2 percent to around 1.15 million vehicles in the January-to-June period, with the second quarter alone dropping 4.9 percent to 590,962 units. The core BMW brand fared even worse, shedding 7.7 percent to 508,675 automobiles. Almost all of that pain originated in Asia: China deliveries plunged 20.4 percent to 261,800 in the half year, and the second quarter saw a staggering 30.2 percent decline year-on-year. BMW board member Jochen Goller highlighted the bright spots in the US and Europe but offered no comment on the Chinese rout.
The company's response has been twofold: a drastic profit forecast reduction and a fresh cost-cutting push. In June, BMW slashed its full-year margin outlook for the automotive segment from 4–6 percent to just 1–3 percent, blaming weak Chinese demand, the Middle East conflict, rising energy costs, and fragile consumer confidence. The arrival of von Boxberg, who previously led restructuring programs inside the Lufthansa group, signals that headcount reduction is now a central pillar of the recovery plan.
Should investors sell immediately? Or is it worth buying BMW?
The market has already punished the stock heavily. BMW's shares closed at €58.40 on Friday, within 3 percent of their 52-week low of €56.72 reached in mid-July. The year-to-date decline stands at 37.41 percent, leaving the company among the worst-performing automotive stocks in Europe. Analysts expect the forthcoming Betriebsversammlung – where management will brief staff on the job cuts – to be a key catalyst for near-term sentiment.
Not all news is grim. BMW's electric-vehicle business is gaining traction, with second-quarter deliveries of electrified models rising 0.8 percent to 162,870 units. The newly launched iX3, built on the dedicated Neue Klasse platform, is the star performer: in Europe, one in three all-electric BMW orders is now for the iX3, and demand has been strong enough to push the Debrecen factory in Hungary into double-shift production ahead of schedule. The Mini brand also posted a solid 17.1 percent increase in deliveries to 81,035 cars.
Despite the margin warning, BMW is sticking to several financial targets. It still expects free cash flow in the automotive segment to exceed €2.5 billion, maintains a dividend payout ratio of 30–40 percent, and continues its share buyback program. The second-quarter and half-year financial results are due on July 30, and investors will be watching closely to see whether the iX3 ramp-up can offset the damage from China or if the downtrend that began in December persists. Against a backdrop of industry-wide weakness – the Center of Automotive Management found 14 of 20 major manufacturers recorded sales declines in the first half, led by Volkswagen at minus 6.5 percent – BMW's move to hire a restructuring specialist is a clear signal that the company expects the headwinds to last longer than a single quarter.
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