BMW Could Dramatically Cut Its Lineup, With Crossovers Also on the Chopping Block

BMW is gradually moving toward becoming a more mainstream automaker as part of an ongoing business restructuring. The company has already announced major workforce reductions amid mounting financial pressure, driven in part by a sharp decline in BMW sales in China.

But restoring its financial health may require additional measures. BMW is now working to streamline its lineup, which would help reduce manufacturing costs. Niche models, or vehicles aimed at relatively small groups of buyers, are expected to be the first to go.

This spring, BMW ended production of the Z4 sports car and has no plans to develop a successor. The roadster was developed on the same platform as the Toyota GR Supra. Toyota's sports car is reportedly due for an update, with Toyota's leadership previously hinting that the automaker wants to expand its Gazoo Racing performance lineup.

BMW is also preparing to end production of the 8 Series. The niche model is currently offered in the U.S. as a four-door Gran Coupe, convertible, and coupe. Its discontinuation is partly tied to BMW's changing priorities, with the automaker increasingly focused on electric vehicles based on its Neue Klasse architecture.

The i4 is also expected to leave the lineup next year. Its departure is tied to the arrival of the new BMW i3, which BMW plans to offer in a wider range of configurations. As the smaller model expands, it could draw buyers away from the i4. Dropping the less popular model would therefore allow BMW to reduce production costs.

Another possible candidate for cancellation is the XM. The high-performance crossover has been one of BMW's weaker products in recent years, attracting limited demand since its launch. The XM is also something of an outlier within BMW's lineup, creating additional manufacturing complexities.

BMW is also winding down production of the X4 coupe-style crossover. The 2 Series Active Tourer could be next, although that model is not sold in the U.S. The speculation is based partly on stronger demand for the X1 in Europe, where registrations of the compact crossover have surpassed the combined volume of the X2 and X3.