BMW Stock Crisis: Leadership Shakeup Meets Unsold Inventory Glut in 2025
- Nedeljković Steps In During Turbulent Times
- US Market: i4 Becomes the Canary in the Coal Mine
- Tech Gambits at CES: Alexa Integration and the "New Class"
- Global Contradictions: India Price Hikes vs. German Shutdowns
- Investor Crossroads: Hold or Fold?
- FAQs
BMW faces a dual challenge as new CEO Milan Nedeljković takes the helm amid a mounting inventory crisis, particularly in the US market. With nearly 90% of i4 models unsold and pressure from US tariffs and weak Chinese demand, the automaker’s 2025 outlook is under scrutiny. This article delves into the operational hurdles, technological pivots, and financial implications for investors. ---
Nedeljković Steps In During Turbulent Times
Milan Nedeljković, BMW’s former production chief, has been appointed CEO by the board, inheriting a company grappling with slowing EV demand and inventory backlogs. His tenure begins as BMW’s US dealers report a staggering 89.2% of i4 sedans from the 2025 model year remain unsold—the highest among peers like Porsche Macan (67.8%) and VW ID.4 (59.1%). Analysts attribute this to aggressive production targets clashing with softening consumer appetite. "The US market is a litmus test," notes BTCC auto analyst Clara Mertens. "BMW must balance discounting to clear stock without eroding its premium brand equity."
US Market: i4 Becomes the Canary in the Coal Mine
Data from iSeeCars reveals the i4’s dismal sales performance, signaling broader headwinds. While BMW’s Dingolfing plant maintains 2025 output at 300,000 units, the disconnect between supply and demand may force margin-squeezing incentives. Compounding issues: US tariff policies and China’s economic slowdown. "The inventory glut could shave 3-5% off Q1 margins," warns TradingView’s automotive sector tracker. Meanwhile, BMW’s stock (€93.72 as of Dec 22, 2025) remains up 20% YTD—a resilience some attribute to Optimism around Nedeljković’s cost-cutting pedigree.
Tech Gambits at CES: Alexa Integration and the "New Class"
Amid operational woes, BMW is doubling down on innovation. The Munich plant completed trials for its 2026 "New Class" EVs, while the CES showcase will debut the iX3 featuring Amazon Alexa+ and panoramic iDrive. "They’re playing catch-up to Chinese rivals like Geely’s ‘Crab Driving’ tech," admits a Bavarian engineering lead. The i3 reboot, slated for late 2026, aims to reclaim lost ground in urban mobility—if battery supply chains cooperate.
Global Contradictions: India Price Hikes vs. German Shutdowns
BMW’s strategy diverges sharply by region. In India, motorcycle prices will rise 6% in January 2026 due to input costs, while Dingolfing’s holiday shutdown extends to January 6. This patchwork approach reflects the automaker’s struggle to harmonize global operations. "The China-US tension forces Balkanized tactics," says Bloomberg Intelligence’s Lisa Lee. "But Band-Aid solutions won’t fix structural issues."
Investor Crossroads: Hold or Fold?
With BMW’s P/E ratio at 8.7—below industry average—the stock presents a value trap or bargain. Nedeljković’s first 100 days will be critical: Can he streamline production, revive US demand, and protect margins? "Watch for CES announcements and Q1 inventory burn rates," advises BTCC’s Mertens. One wildcard: the EU’s pending vote on Chinese EV tariffs, which could reshuffle competitive dynamics overnight.
---FAQs
Why is BMW’s i4 struggling in the US?
The 2025 i4 faces a perfect storm: high production volumes, softening EV demand, and competition from Tesla’s refreshed Model 3. Dealers report buyers are holding out for deeper discounts.
How might BMW address the inventory crisis?
Expect tactical lease subsidies and dealer incentives, though aggressive fire sales could damage resale values—a key metric for luxury brands.
What’s the significance of the CES announcements?
BMW needs to prove its tech can rival Chinese automakers’ innovations. The iX3’s Alexa integration targets younger demographics, while the i3 reboot aims at urbanites.
