BMW's Battery Deals Land as Guidance Cuts and a 721,000-Car Recall Test Investor Nerve
Published on 11/14/2026 at 03:02 | Editorial boerse-global.de
BMW has locked in Samsung SDI and LG Energy Solution to supply its Gen6 high-voltage battery cells, with the Korean pair splitting duties by region: Samsung SDI covering Europe and LG Energy Solution handling the United States. Deliveries from those regional plants are slated to begin from the end of the 2020s, the company said.
The supply agreements, finalised on Monday, give the Munich-based automaker a measure of certainty on its next-generation electric drivetrain just as its near-term numbers have come under pressure.
Q3 revenue holds, margins thin out
For the third quarter of 2026, BMW reported group revenue of EUR 30.452 billion (EUR 30.5 billion) and a pre-tax group result of EUR 2.083 billion (EUR 2.08 billion). The automotive segment's EBIT margin came in at 3.4%. Deliveries, however, slipped 6.3% year on year to roughly 551,000 vehicles.
The company has since slashed its full-year outlook for the automotive EBIT margin to a range of ?0.5% to +0.5%, down from the 1% to 3% it had previously guided. Return on capital employed in the automotive business was also marked lower, now projected at ?1% to +1% versus the earlier 1% to 5% forecast.
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Parts shortages hit three plants
Near-term production has not escaped disruption. On Tuesday BMW flagged short-term component shortages at external suppliers, which triggered shift cancellations at individual plants. Reuters reported that three factories were affected.
Analysts moved quickly to reprice the stock. Deutsche Bank Research cut its price target to EUR 66 from EUR 71 on 5 November while keeping its "Buy" rating. A day earlier, JPMorgan trimmed its target to EUR 68 from EUR 82, maintaining its "Overweight" stance.
Recall adds fire-risk headache
Compounding the operational strain, BMW of North America is recalling 720,796 vehicles in the US over a fire risk tied to a possible short circuit. The NHTSA, the US traffic safety regulator, advised owners to park the affected cars outdoors and away from buildings and other vehicles until repairs are carried out. BMW said the remedy is still being developed.
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Despite the recall and the trimmed guidance, the shares were trading 1.2% higher on the day at EUR 57.72.
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