BMW Able to Face Sales Slump Without Losses image

According to the German magazine Der Spiegel, BMW can be hit by a 30% decrease in sales without reporting losses.

Thanks to the automaker’s anti-crisis package, which was agreed between management and staff, BMW can face a 30% sales fall, without being forced to cut jobs or post losses. The agreement was reached last month, and it allows BMW to enforce staff holidays during downturns, scrap shifts and remove limits to overtime work to prepare for possible crises.

“Our agreement with workers (of late September) provides for a whole bunch of flexibilisation measures,” said a BMW spokesman. “The goal of the plan is to preserve jobs.”

On September 26th, BMW announced that the agreement reached with labor unions concerning the lease workers includes measures to fit production to changes in vehicles demand. Luxury automakers, Audi, BMW and Mercedes-Benz, managed to better deal with the European crisis compared with the mass-market peers, as they benefited from increased demand for premium cars in the US and China.

Despite the European crisis, BMW managed to reach a record month in sales in September. BMW, Rolls-Royce and Mini delivered more than 177,716 units worldwide, compared with 159,223 units last year, up 11.6% compared with September 2011. The automaker also reported its best nine months with sales up 8.3% to 1,335,502 vehicles, compared with 1,232,619 units last year.