Bayerische Motoren Werke Aktiengesellschaft (ETR:BMW) outlined its near-term product plans, regulatory concerns, and regional market trends during a media Q&A session at the BMW Group Annual Conference, with CEO Oliver Zipse and other board members addressing questions ranging from the Neue Klasse rollout to China pricing, tariffs, and workforce trends.
Neue Klasse launch timing and “beating heart” of BMW
Zipse described the upcoming i3 as “the beating heart of BMW” and tied it directly to the Neue Klasse program. He said BMW has spent years rebuilding the Munich main plant and indicated the work is completed, with vehicles already being produced.
On the production side, board member Milan Nedeljkovi? said BMW’s global production system has been prepared for the Neue Klasse and other upcoming models. He added that preparations at the Spartanburg plant are on time and that BMW expects to ramp production and deliver on time, citing strong demand and “a lot of orders” at its plants.
CEO succession and continuity
Zipse said that after 35 years at the company, he believes “the time has come to step away,” adding he is leaving “very happy” and “very satisfied.” He said there would be significant continuity and identified production board member Milan Nedeljkovi? as his successor, describing the transition as consistent with “the BMW way” and not expecting disruption.
EU CO2 policy: “tailpipe” focus and technology openness
Zipse devoted significant time to European emissions policy and BMW’s preference for a broader CO2 accounting approach. He said BMW had met 2025 CO2 goals without pooling and claimed BMW had performed below its target level, adding the company has reduced emissions across Scope 1, Scope 2, and Scope 3 year over year.
Looking toward a revision of 2035 goals, Zipse argued that “technology openness” is being constrained by extensive “fine print” and criticized aspects he said are unrelated to CO2 reduction. Among the points he raised:
- Local content and exports: Zipse said European rules as currently framed could penalize global business models that are important for European and German industry, warning of Europe “cutting ourselves off from the world.”
- Incentives and vehicle categories: He questioned why small vehicles should receive CO2 credits based on size rather than efficiency, and called the policy direction “well-intentioned but wrongly executed.”
- Value-chain accounting: Zipse argued emissions should be assessed “cradle to grave” across the entire value chain, including materials such as green steel and supply chains, rather than focusing only on tailpipe emissions.
Zipse also said BMW believes current regulatory trajectories could lead to “a significantly shrinking industry,” which he described as dangerous, while maintaining BMW is showing “there’s a different way.”
In response to a question about renewable fuels, Zipse cited diesel HVO100 and said more than 7,000 fueling stations in Europe can supply it. He claimed that using the fuel can reduce CO2 footprint by 90% and questioned why such measures are not incorporated into regulation.
Geopolitics and supply chain exposure
Executives said BMW is closely monitoring the conflict involving Iran, but emphasized uncertainty given the early stage. Purchasing chief Nicolai Martin said that, at the moment, there are no supply bottlenecks tied to the situation and cited only one direct supply relationship to Dubai for aluminum. He said BMW is hedged over the long run and has additional sources, adding there are no current production impairments.
Zipse later reinforced that the situation is too new to forecast full-year impacts and said BMW’s first response in such events is to investigate supply chains down to raw materials to create transparency. He repeated that BMW currently sees no supply chain interruptions and said any broader outlook would be speculation.
On demand, sales chief Jochen Goller said the Middle East is important but represents a relatively low percentage of BMW’s overall business. Regarding Rolls-Royce, he called the region an important market but said it is too early to draw conclusions and that the company will “wait and see,” adding that Rolls-Royce is supported by a diversified regional footprint.
China: pricing measures, dealer restructuring, and BEV pressure
Chief Financial Officer Walter Mertl said BMW initiated product measures in China alongside efforts to stabilize and restructure its dealer network, acknowledging a “slight negative impact” from these actions. However, he said transaction prices have stabilized and are “improving slightly compared to Q3,” and he described dealer performance as smoother.
Mertl said sales in the first two months of the year tracked as planned and that if the run rate continues, BMW has the opportunity to return to prior-year levels in China. Goller echoed that BMW has seen stabilization since Q4 and described the start to the year as “quite solid.” He also pointed to a product push in China, including an April motor show appearance with three world premieres and additional new models in the second half of the year.
Asked specifically about BEV performance in China, Goller said BMW’s BEV sales declined “a little bit” last year amid pricing pressure in electrified vehicles, adding BMW did not follow all market pricing moves and held back in certain segments. He said the Neue Klasse launch in China toward the end of the year is expected to be well received, with growth expected to show more clearly next year, though he did not provide figures.
Executives also addressed competitive dynamics from Chinese automakers in Europe. Goller said he expects Chinese manufacturers to gain share but suggested it would come from other OEMs rather than BMW, drawing comparisons to prior competitive waves from Japanese and Korean brands.
On broader electrification, Goller said BMW had about 18% BEV share and 25% electrified share in 2025, calling that a high baseline. He said 2026 regional differences will reflect the Neue Klasse ramp-up and staggered rollout—starting in Europe, then the U.S. in the second half, and China toward the end of the year—adding that more visible full-year impact is expected from 2027.
BMW also discussed hydrogen and driver-assistance strategy. Development board member Joachim Post said the X5 will offer a fuel cell drivetrain “as of 2028,” and said Neue Klasse battery technology improves range and charging, citing “far beyond 800 kilometers” and 400 kW charging power. Post added BMW is watching range extenders but believes it is well positioned without them for now. On ADAS, Post said BMW is focusing on Level 2 and Level 2+ systems—working with Qualcomm in Europe and the U.S. and Momenta in China—and said BMW no longer offers Level 3 because demand was not sufficient to make it profitable, while leaving open the possibility of returning if feasible business models emerge.
Finally, BMW addressed workforce trends. People and Real Estate board member Ilka Horstmeier said headcount planning reflects technology and process optimization, noting major training initiatives in software, digitalization, and AI totaling about €1 billion in recent years. She said automation and digitalization are reducing staff requirements and that the company is managing changes through existing HR tools and natural fluctuation, while emphasizing that employment is secured and BMW will continue apprenticeship and training positions. Horstmeier also said temporary worker levels fluctuate with utilization, market demand, and site needs, and described temporary roles as a pathway into permanent employment for many workers.
About Bayerische Motoren Werke Aktiengesellschaft (ETR:BMW)
Bayerische Motoren Werke Aktiengesellschaft, together with its subsidiaries, engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories.
