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
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
-
UPDATE: UAW, GM Reach Tentative Labor Deal
General Motors Co. and the United Auto Workers union have reached a possible deal on a new four-year labor contract covering some 48,000 of the union’s hourly workers in the U.S.
-
What Suppliers Need to Know Right Now
This is a time of reckoning for the auto industry, says Paul Eichenberg. He has some recommendations as to how companies can make their way through it.
-
VW, the Future & the End of “Conventional” Jobs
"In order to become a global provider of sustainable mobility, we are pressing ahead with future projects such as electromobility, digital connectivity and new mobility services, equipped with the necessary resolve and financing.”