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.
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