BMW's November Product Push Collides With a Downgrade and a Supply Glitch
Published on 11/10/2026 at 14:11 | Editorial boerse-global.de
BMW has confirmed shift cancellations at three plants after short-notice shortages of externally supplied components. According to Handelsblatt, the sites affected are Regensburg, Leipzig and Oxford, per company sources. Shares were down 0.2% on the day.
The production hiccup lands in the same week that S&P Global Ratings cut BMW's issuer rating from "A/A-1" to "A-/A-2" on 4 November, attaching a negative outlook. The agency pointed to fierce competition, falling sales in China, US tariffs and restructuring charges. Just over a week earlier, BMW had lowered its expected full-year 2026 automotive EBIT margin to between ?0.5% and +0.5% because of expanded portfolio and structural measures. Before those measures, the company still expects a margin above 2.0%, and its free cash flow guidance was left unchanged at more than EUR 2.5 billion.
Third-quarter 2026 figures, also published on 4 November, showed a pre-tax result of EUR 2.08 billion and an automotive EBIT margin of 3.4%.
Two Model Launches Set for November
BMW is countering the weak Chinese market with a rapid model refresh. The company announced yesterday the next market introductions from its Neue Klasse range: the iX3 and i3 will both launch in November. For investors, the tight scheduling points to a determined product offensive — provided it translates into additional deliveries and helps BMW slow the sales decline.
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The new iX3 reaches the Chinese market on 25 November, with deliveries to follow gradually. The i3 is due to launch on 27 November at the Guangzhou auto show, where binding orders will also open. BMW is applying a single nationwide price for the i3, with first customer handovers planned for the first quarter of 2027 — leaving a ramp-up period between the order books opening and the first deliveries.
Technically, the i3 pairs BMW's sixth-generation electric drive with the "Heart of Joy" control system and the iDrive panoramic operating concept. A driver assistance system developed jointly with Momenta completes the package, so the offensive covers both powertrain and digital equipment.
Cheaper Batteries as a Lever
Alongside the launches, BMW is widening its battery mix. CEO Milan Nedeljkovic confirmed on the third-quarter 2026 conference call that selected Neue Klasse electric cars will increasingly use LFP batteries. The cheaper cell chemistry could support profitability if the cost advantages stay inside the company.
One concrete example is the Chinese iX3 30L, which carries a 77 kWh LFP battery and a claimed range of 630 kilometres under China's CLTC standard. Other variants of the Chinese iX3 continue with NMC batteries. Whether lower battery costs feed through to cheaper sticker prices depends on pricing policy — so besides order intake, how profitably BMW sells the new cars will be decisive for investors.
China Remains the Critical Test
The offensive runs straight into a sharp sales slump: in the third quarter of 2026, China deliveries fell 24.8% year on year, meaning the Neue Klasse arrives in a market where BMW has recently lost substantial volume. The November dates provide concrete anchors for the coming months; the strategic payoff will then hinge on demand and the delivery ramp-up. A renewed model line-up argues for an operating recovery, as long as it wins customers and delivers a sustainable earnings contribution.
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More Supply Contracts, Lower Price Targets
Just over a week ago, BMW also closed additional supply agreements for Gen6 high-voltage battery cells. Samsung SDI is to supply from European plants from the end of the 2020s, LG Energy Solution from US plants.
Analysts, meanwhile, have been trimming their targets. Deutsche Bank Research cut its price target on Thursday from EUR 71 to EUR 66 while keeping its "Buy" rating. JPMorgan had already reduced its target from EUR 82 to EUR 68 on 4 November, reaffirming "Overweight".
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