BMW is speeding up the rollout of its Neue Klasse electric vehicles, allowing it to bring forward the retirement of some older Gen5 models. The transition is happening alongside a broader restructuring: BMW cut its 2026 automotive EBIT-margin forecast to between −0.5% and 0.5%, while still expecting a margin above 2% before structural and portfolio measures.
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Which Gen5 models will BMW retire?
BMW has confirmed the direction of travel, not a list of affected vehicles. It plans to phase out selected Gen5-based models earlier than originally scheduled as production of its newer generation ramps up, but BMW has not publicly named the departing models in the reporting available here.
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One BMW-focused report offers possible candidates, speculating that the Neue Klasse i3 could replace the i4, which might leave the lineup in 2027. The report also flags the current iX1 as a possibility, but the available details do not establish a retirement date or replacement for that model.
24 These are hypotheses—not confirmed BMW plans.
Why the faster transition is affecting BMW’s outlook
BMW’s faster rollout is being supported by customer interest in the Neue Klasse. An earnings-call summary reported more than 100,000 iX3 orders and an additional production shift at the Debrecen plant.
11 Those orders indicate demand, but they should not be mistaken for completed deliveries or proof that every new model will sell at the same rate.
At the same time, BMW says it is accelerating structural and portfolio measures. The associated costs have pushed the company’s full-year 2026 automotive EBIT-margin forecast down from 1%–3% to −0.5%–0.5%. BMW still expects the margin to be above 2% before those measures are accounted for.
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The estimated impact of the measures on the automotive margin has risen from 1.25 to 2.5 percentage points, according to reporting on BMW’s realignment.
22 The restructuring also includes a redundancy programme covering around 8,000 jobs in Germany.
8 Together, these costs help explain why a quicker product transition can weigh on near-term reported profitability even as BMW brings forward new models.
What BMW’s third-quarter results show
The transition is taking place amid mixed results. BMW’s automotive segment reported €901 million in EBIT and a 3.4% margin for the third quarter; its margin for the first nine months was 3.5%.
19 The quarterly margin was down from 5.2% a year earlier, while the group reported net profit of €1.448 billion, down 14.7%, and revenue of €30.45 billion, down almost 6%.
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Total vehicle deliveries fell 6.3% to 551,075. By contrast, battery-electric deliveries exceeded 110,000, up 7.2% year over year.
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19 The figures show that EV deliveries grew even as overall deliveries and the automotive margin declined; they do not, by themselves, establish how profitable individual Gen5 or Gen6 models are.
China remains one source of pressure: BMW’s quarterly reporting described weak consumer demand, and an earnings summary put the company’s China retail sales decline at 24.8% for the quarter.
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20 The faster Neue Klasse rollout is therefore a product and restructuring response underway alongside broader market challenges, not evidence that the company’s near-term profitability is already secure.