Pole Position: UBS European & US Autos Daily

Research evidence excerpt

Pole Position: UBS European & US Autos Daily

Global Research

22 June 2026ab

Pole Position Equities

Europe including UKUBS European & US Autos Daily

Automobiles

Patrick Hummel, CFA

BMW & MBG ready additional savings: what’s the impact on margins and cash Analyst

returns? patrick.hummel@ubs.com

Reuters reports that BMW is preparing talks with its labour leaders in Germany for +41-44-239 52 54

additional cost cutting. In the profit warning last week, BMW had announced ~€1bn of David Lesne

charges related to restructuring in Germany and impairments. Meanwhile, MBG will also Analyst

discuss more cost cuts with its labour representatives, Bloomberg writes, based on david.lesne@ubs.com

comments from HR Chief Britta Seeger. Separate to this, MBG chairman Martin +33-14-888 3034

Brudermüller told Handelsblatt in an interview that Germany should consider returning Joseph Spak, CFA

to the 40-hour work week to improve its competitiveness. Analyst

joseph.spak@ubs.com

Our view: +1-212-713 3089

Cost cutting will remain a key driver of earnings for German premium OEMs as the base Juan Perez-Carrascosa

needs to be adjusted to lower China volumes and ongoing pricing pressure. The Analyst

question is whether more cost cutting can fully offset these headwinds to the top line, juan-perez.carrascosa@ubs.com

+34-91-436 9025

coinciding with substantial commodity inflation. We believe that BMW’s and MBG’s

Auto/Car EBIT margin strategic corridor of 8-10% by ~2028 is highly unlikely to be Paul Gong

achieved against the current backdrop; an MSD margin of 5-6% for 2028 seems more Analyst

likely to us. On that basis, the shares still trade on ~6x P/E, no material discount to recent paul.gong@ubs.com

+852-2971 7868

trading history. It remains to be seen whether management teams continue give priority