Report – BMW aims to cut down Germany’s labor costs image

Citing as the source BMW workers delegates, German local newspaper Muenchner Merkur has published a story that sees the German automaker seeking a 100 million euros ($136 million) per year reduction in labor costs.

The carmaker, the biggest global player in the premium segment, is aiming to reduce its home base labor costs from 2015 onwards through a carefully designed strategy, rather than job cuts. According to the paper, the cost savings would come from the company carefully choosing which of its Bavarian factories would get chosen for the future production of new BMW models.

The economical measures comes in the wake of the carmaker spending double digit sums on investment plans for new models designed to aid it in keeping the edge over German rivals Audi and Mercedes-Benz – as it strives to reach new record sales for 2014. Its US production facility in Spartanburg, South Carolina, would be among the ones receiving a cash infusion of $1 billion to cater for expansion plans – with the site turning into BMW’s biggest since 2016.

A BMW spokesperson contacted in relation to the reported story declined to specifically comment on it but did contend that the company is involved in ongoing negotiations with its workers’ council – assessing which locations are economically attractive, as the management weighs down the competitiveness and costs of each proposed location.

Via Reuters