BMW, the German auto-manufacturer, reported that the company and the labour have agreed on common terms for reducing costs to skirt across “drastic measures”. The company had been discussing with labour representatives as well as “its top suppliers” for it aims to save costs of over “12 billion euros” by 2022.
Under this plan, the company will need to reduce “a payout scheme for workers based on company profits” besides the same will also affect “Christmas and other bonuses for some workers” which will be effective from the coming year of 2020. The said announcement came at the wake of Audi’s announcement of cutting down one tenth of its jobs which will reportedly free up “billions of euros” for funding “its shift toward electric vehicle production”.
BMW’s chief executive officer, Oliver Zipse said:
“We have achieved a solution based on solidarity. This allows us to avoid drastic measures that others are currently taking to reduce their costs”.
An industry downturn has hit the auto manufacturers, especially in the Chinese markets, whereby making it imperative to boost investments in electric vehicles for many countries are likely to ban “conventional combustion engines”.
References:
reuters.com
Under this plan, the company will need to reduce “a payout scheme for workers based on company profits” besides the same will also affect “Christmas and other bonuses for some workers” which will be effective from the coming year of 2020. The said announcement came at the wake of Audi’s announcement of cutting down one tenth of its jobs which will reportedly free up “billions of euros” for funding “its shift toward electric vehicle production”.
BMW’s chief executive officer, Oliver Zipse said:
“We have achieved a solution based on solidarity. This allows us to avoid drastic measures that others are currently taking to reduce their costs”.
An industry downturn has hit the auto manufacturers, especially in the Chinese markets, whereby making it imperative to boost investments in electric vehicles for many countries are likely to ban “conventional combustion engines”.
References:
reuters.com
