The German automaker BMW is preparing a serious restructuring of its product range, combining expansion in key segments and strategic reduction of less profitable models. During the special event for investors Capital Markets Day, the company officially confirmed the appearance of an entirely new compact electric car of the Neue Klasse generation, scheduled for 2028. The model will focus mainly on the European market, where the Bavarians are striving to strengthen their positions in the more affordable premium segment. All indications point to this being the fifth generation of the iconic 1 Series.
The new electric representative will be built on the modern architecture used in the next generations of the iX3 and i3. This technical solution brings important news: the basic versions will again have a classic rear-wheel drive. At the same time, the gasoline versions of the 1 Series will not disappear from the market. Like the future i3 and 3 Series, the two powertrain options will share a similar design language, but will rely on fundamentally different platform architectures.
At the opposite end of the range, the brand is looking at the American market, where the realization of a monumental crossover positioned above the X7 is being considered. The project, unofficially dubbed the X8, is still awaiting final approval for series production. The huge demand for SUVs in the US has already strained the capacity of the Spartanburg plant to the limit, which is forcing the concern to look for options for localization and expansion of capacities near its main markets.
With regard to Asia, the strategy is to drastically strengthen local production in China, where the models of the Neue Klasse range will be deeply adapted to the specific preferences of local buyers. Imports into the country will be limited to high-profit niche cars only, with the goal being that 95% of cars sold in this market will be assembled locally by 2030.
However, the expansion of the portfolio is accompanied by a sharp optimization of the existing range. The first victim of this policy is the compact van 2 Series Active Tourer, which will not receive a next generation. At the same time, a new player is being prepared in the top league. The first production model under the BMW Alpina brand is expected in 2027, which will be based on the 7 Series and will be positioned in the price gap between BMW and Rolls-Royce.
To achieve financial efficiency, the company plans to rely even more heavily on artificial intelligence in engineering and production activities. By mid-2027, a 20% reduction in management structures and divisions is planned. This restructuring program aims to increase the profitability margin of the automotive business to 3-5% by 2028, with the ultimate goal of reaching levels of 8-10% at the beginning of the next decade.