BMW is seeking greater efficiencies across the group as it readies for increasingly challenging market conditions ahead, but profitability is expected to improve only gradually over the coming years. German automakers are doubling down on efforts to slash costs as pressure in the key China sales region intensifies with fierce competition and a shrinking market, while elevated energy costs and the Trump administration’s tariff regime are also hitting their bottom lines. The automaker plans to cut the number of business divisions and management roles by 20% over the coming months.

BMW is targeting an automotive earnings before interest and taxes margin of 8% to 10% by the start of the next decade. Outlining its strategy at an investor event Wednesday, the company said it must significantly increase speed and efficiency across the group.