**Underlying Profitability and Margin Expectations**: BMW's auto margin for Q3 was around 5% after accounting for a €800 million warranty provision related to the IBS issue. For Q4, the expectation is to maintain a margin in the range of 5% to 7%, with a year-to-date EBIT margin projection of 6% to 7%. Strategic targets remain at 8% to 10%, indicating potential for improvement despite ongoing challenges related to IBS.

**North American Manufacturing Footprint**: The Spartanburg plant produces 65% of U.S. sales, predominantly X models, providing natural protection against tariffs. BMW has reported a 20% increase in car sales in October 2023, signaling a strong market presence. The company plans to invest €1.7 billion to electrify this facility, showcasing a commitment to maintaining competitiveness and adaptability.

**Challenges in China**: The overall auto market is shrinking in China, but BMW's sales of battery electric vehicles (BEVs) are growing, indicating a 15% market share in BEVs. However, there are concerns about dealer profitability, and specific dealers have faced liquidity issues. Strategies are in place to stabilize operations, but market dynamics remain a risk.