BMW and its employees have reached an agreement that would allow the German carmaker to withstand a 30-percent drop in sales without posting losses or having to reduce its workforce, according to German magazine Der Spiegel. Both parties agreed in September to an anti-crisis package that allows BMW to cancel shifts, enforce staff holidays during downturns as well as cancel limits to overtime work to mitigate the effect of possible crises, Der Spiegel reported.
A BMW spokesman confirmed the agreement to Reuters, saying that it provides for a set of “flexibilization measures," adding that the goal of the deal is to preserve jobs. The German carmaker, which is bound to report its third-quarter results on Nov. 6, 2012, disclosed on Sept. 26, 2012, that the agreement with staff representatives to settle a row over lease workers includes steps to adjust output to changes in vehicle demand.
The premium carmaker, as well as rivals Audi and Mercedes-Benz, has been able to cope with the continued slump in vehicle sales in Europe due to a solid home market and the growing demand for premium cars in China and the United States. In EU and EFTA markets, BMW posted a 10.2 percent increase in brand sales in September 2012, according to data from the industry organization ACEA. Sales at Audi grew 1.3 percent while deliveries declined 6.1 percent.