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BMW to Cut Costs By Narrowing Model Options
BMW AG hopes to make its manufacturing process more efficient by integrating option packages and offering fewer powertrain choices.
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BMW AG hopes to make its manufacturing process more efficient by integrating option packages and offering fewer powertrain choices.
Chief Financial Officer Nicholas Peter tells reporters the move will help pay for increased spending on technology, notably electrified powertrains. He mentions as cost-cutting opportunity that the company currently offers 100 steering wheel designs.
Peter says the BMW will abandon manual transmissions on certain models (entry-level models of 5 Series diesels and U.S. versions of the 2 Series Coupe, for example). The company also will narrow the number of diesels it offers with some models in Europe.
BMW reiterates its financial guidance for 2017, which predicts modest gains in unit sales and pretax profit, and an operating margin between 8% and 10%.
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