The premium manufacturer BMW will begin the third tranche of its share buyback program, which has a total volume of up to 2 billion euros, on Wednesday.

As the company has announced, the share buyback program is scheduled to have a volume of up to 410 million euros for common shares and up to 90 million euros for preferred shares in the period from June 5 to no later than December 30, 2024. In doing so, a maximum of approximately 24.37 million common shares and approximately 5.17 million preferred shares may still be purchased.

Under the first two tranches, approximately 8.29 million common shares and approximately 1.92 million BMW preferred shares were acquired from July 3, 2023, to June 3, 2024, for a total of nearly 1 billion euros. The share buyback program primarily serves the purpose of canceling shares with a corresponding reduction in share capital.

BMW plans to increase earnings per share and enhance shareholder value through this measure. The share buyback can also be seen as a sign of the management's confidence in the company's future performance.

In XETRA trading, the BMW stock ultimately lost 0.67 percent and closed at 91.42 euros. This possibly reflects some investor caution, paying attention to further developments in the automotive industry and the global economy.

BMW remains a leading player in the premium segment of the automotive industry, while the company also invests heavily in the electrification and digitalization of its vehicle fleet. The success of these strategic initiatives will be crucial for the future development of the stock price.