The fast-paced shift towards electricity-powered vehicles and the digitalisation of production is piling pressure on the German automobile industry, a central pillar of the country’s economy. Like Volkswagen and, more recently, Audi before them, BMW has found itself needing to cut costs in order to protect its profit margins and level of investment in research and development. However, unlike its competitor based in Ingolstadt, the Munich-based manufacturer has managed to negotiate a company agreement with its works council that should allow it to save some €12 billion by 2022, without any job cuts. Savings in the area of personnel will be achieved mainly through reductions to a range of bonuses.
BMW v Audi – two ways of saving. At first sight, the difference between Audi and BMW’s approaches to cost cutting appears significant. In the space of the week, the former announced that it is to cut 9,500 jobs by 2025 in order to achieve €6 billion of cost savings, while the latter said that, following an agreement reached with its works council, that it would save some €12 billion without having to cut a single job. However, on closer inspection, and without specific statements from the compa
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