BMW plans to reduce its labor costs in Germany by EUR100 million ($136 million) annually from 2015 onwards, according to Muenchner Merkur, citing workers' representatives. The paper said that savings would come from decisions over which sites in Bavaria would be economically appealing enough to build new BMW models in the future.
BMW is planning a double-digit million euro investment and new model launches to stave off challenges from premium rivals Audi and Mercedes-Benz. BMW is also targeting post record sales this year.
In March, BMW disclosed a $1-billion investment to expand its Spartanburg plant in South Carolina, which includes boosting the US site’s workforce by about 800 people to 8,800.
The investment would make the site as BMW largest production facility by 2016. A BMW spokesman, while declining to comment on the savings target, remarked there were ongoing discussions with the workers' council over where to produce which car, adding that the management will evaluate the competitiveness and costs of different facilities. [source: Reuters]