German auto giants bleed out with BMW margins crashing below 3 percent

BMW issue profit warning for 2026. They cut expected automotive EBIT margin to only 1 to 3 percent instead of 4 to 6 percent. This mean profit drop over 60 percent in some measures.

Main reasons are sharp fall in demand in China and extra costs from Iran situation.

BMW market cap now below 40 billion euro after shares fall 8 percent or more.

Only one day before VW executives say in internal survey company face existential threat. Six of nine board members call situation very dangerous.

This add to longer German auto crisis with China competition EV shift high costs and lower sales. Many see it as deep problem for whole sector.