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
-
Transit Unions Brace for Autonomous Future
Warning that autonomous vehicles could eliminate as many as 3 million jobs in the U.S., the Transportation Trades Dept. (TTD) is calling on Congress to implement a number of measures to minimize the impact on the workforce and address potential safety concerns of such vehicles.
-
UPDATE: Unifor Ratifies GM Labor Pact by 86% Margin
Hourly workers at General Motors Co.’s CAMI assembly plant in Ingersoll, Ont., will vote today whether to accept an agreement to end a strike they began on Sept. 17.
-
On the Management Side: Dealing with Rule Breakers
When an employee breaks the rules, what should his or her boss do about it?It’s an important question because the answer can affect the employee’s future behavior, his department’s morale—even a company’s relationship with a union, if one is involved.Every manager, therefore, should review his disciplinary methods periodically to make sure they are producing the most constructive results.