BMW aims to cut spending by over €12 billion by 2022

News | November 22nd, 2019 by 5
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It looks like BMW is going to have to start spending money a bit more carefully in the following years. Considering all the troublesome news coming in, from possible trade wars to the increasing budgets needed to develop electric vehicles, BMW announced today, through its CFO, that it’s aiming to cut its spending by as much as €12 billion (over $13 billion) by 2022. At the moment, no jobs are in peril though as the Germans say the employment levels will remain steady, at the 2018 levels.

According to Automotive News, Nicolas Peter, the current Chief Financial Officer in Munich, told analysts during a meeting on Wednesday that the company is talking things over with suppliers and union leaders, regarding these issues. “We are currently discussing additional measures with the Works Council. All parties are working very constructively to make the company even stronger and more efficient,” Peter said.

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“The results will be presented next Wednesday at our employee meeting. One thing is clear: We will have to achieve significant savings each year with these measures,” Peter added.

What does that mean? Well, it’s hard to say. Even though BMW plans to keep staff numbers at roughly the same level as 2018, the talks held with the labor representatives means some cutbacks will be made in that regard as well.

Other measures that will be undertaken include the reshaping of the brand’s portfolio as well as an attempt at cutting back on development time for upcoming cars. While the former solution was announced a while back, when we learned a couple of cars will not be seeing new generations (from the GT models to the 2 Series Convertible), the latter is something new and a very ambitious goal. For now, though, the main goal is to keep the number of employees steady, at least for this year.

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