Report: BMW Seeks to Cut Costs as Much as €4 Billion

BMW AG has hired McKinsey & Co. to find ways to reduce the company's annual costs by €3 billion-€4 billion, according to Germany's Manager Magazin.

The report, which cites unidentified company sources, suggests CEO Norbert Reithofer is especially eager to trim costs for the group's Mini brand and entry-level 1 Series small cars.

The project aims to restore the company's profit margins in spite of continued heavy spending on new models and advanced powertrains. BMW has said it wants to maintain an earnings margin before interest and taxes of 8%-10%. Last year its EBIT slipped to 9.4% from 10.8% in 2012.