BMW Looking to Cut €100 Million in German Labor Costs

It seems like huge investments in research and development can’t go without repercussions, not even for the best-selling premium brand in the world, BMW.
BMW worker 1 photo
Photo: BMW
After announcing a $1 Billion investment in the Spartanburg plant, in South Carolina, that would expand the production capabilities by around 50% and increase the work force by 800 to 8,800 employees, the German giant is apparently looking to cut down costs with labor in its homeland.

At least that’s what German publication, Muenicher Merkur is claiming in one of their reports. According to the source, the company is looking to drop around €100 million yearly in workers’ salaries, starting with 2015.

The savings will be attained after a careful review of which plants in Bavaria would be more economically attractive to built new models in the future. Meanwhile, the R&D budged will be kept at record levels, to allow BMW to stay ahead of its competition.

When reaching for an official comment, a BMW spokesman declined to comment the news and the target it stipulates but it did confirm that there are ongoing talks with the workers’ council as to where the cars are being built and assessing competitiveness and costs on different sites.

With the European sales at the lowest point in the last 20 years, it’s only natural that companies are looking to build cars in other locations, so that there’s less money spend on shipping. China is currently the number one market for the Bavarians and that’s where most of the efforts will be focused from now on, alongside the US, of course, that is currently the second biggest market for blue and white roundel badged cars.
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