Mexican Media Brands
BMW Moves Forward with Cost-Cutting Plans
BMW AG has inked efficiency deals with 18 suppliers and is in talks with union officials in Germany to help slash at least $13.3 billion in costs by 2022.
#labor
Share
BMW AG has inked efficiency deals with 18 suppliers and is in talks with union officials in Germany to help slash at least €12 billion ($13.3 billion) in costs by 2022.
Chief Financial Officer Nicolas Peter reiterates that the labor savings will come through attrition rather than layoffs. He expects the company’s overall employment next year will be about the same as last year’s levels.
Updated details about the cost-cutting plan will be announced next week at BMW’s annual employee meeting.
BMW implemented the €12 billion plan after its net profit fell 17% to €7.2 billion ($8.2 billion) in 2018. To help offset rising development costs for electric powertrains, connectivity features and autonomous driving technologies, the company plans to drop some vehicle models and slash the number of drivetrain variants it offers nearly 50% by 2021.
RELATED CONTENT
-
Bentley Looking for Apprentices
It is always encouraging to learn about the efforts of OEMs and suppliers that are running apprenticeship programs to help train the future of the industry.
-
Tesla Fires Hundreds of Employees It Considers Sub-Par
Tesla Inc. dismissed roughly 400 hourly and salaried employees last week, according to The Mercury News in San Jose, Calif.
-
Is Brexit U.K. Auto’s Waterloo?
French manufacturers, particularly those in the automotive sector, are making significant investments in robotic technology, according to the International Federation of Robotics (IFR). The organization says that its most recent figures show that the number of robots installed in the French car industry rose 22 percent, to 1,400 units.