(July 22): BMW AG is pulling out of this year’s Paris car show as new chief executive officer Milan Nedeljkovic cuts costs following a major profit warning.

The automaker decided to cancel its participation in the event that’s taking place in October “due to a shift in priorities,” it said on Wednesday.

BMW “remains committed to a selective presence at automotive shows in the future,” the German carmaker said.

This year’s edition is expected to mark the comeback of legacy brands such as Mercedes-Benz Group AG and Volvo Car AB. Stellantis NV is sending nameplates including Fiat, Lancia and Opel, while Renault SA is joining with Dacia and Alpine.

Volkswagen AG — Europe’s biggest automaker that’s pursuing a major restructuring — is still attending, according to the event’s website. Fewer western brands took part in the 2022 and 2024 editions, leaving the door open for Chinese rivals led by BYD Co to build their presence.

BMW stunned markets last month with a profit warning caused by weakening Chinese demand and the fallout from the Middle East conflict. The group also announced plans to accelerate a cost-cutting push, without elaborating.

BMW’s withdrawal is notable because the German carmaker has often used the Paris show for model unveilings, including the world premiere of the seventh-generation 3-Series in 2018. BMW was part of a wider exodus of manufacturers from the event in 2022 before returning two years later with two Mini debuts and its Neue Klasse concepts.

The decision comes around two months into the tenure of Nedeljkovic, who took over in May from Oliver Zipse. The former head of production is overseeing the build-out of BMW’s updated electric lineup, part of the Neue Klasse platform that cost billions of euros to develop. 

Manufacturers from China that plan to attend the Paris show include BYD, Chongqing Changan Automobile, Xpeng, Geely and Stellantis partner Leapmotor. America’s Ford Motor Co and South Korea’s Hyundai Motor Co also are joining.

Uploaded by Evelyn Chan