BMW looking to save billions with cost cuts
 

<p>Filed under: <a href="http://www.autoblog.com/bmw/" rel="tag">BMW</a>, <a href="http://www.autoblog.com/category/earnings-financials/" rel="tag">Earnings/Financials</a></p><a href="http://europe.autonews.com/article/20140618/ANE/140619862/bmw-plans-multi-billion-cost-cuts-program-report-says"><img alt="Germany Earns BMW" data-caption="CEO of the German car manufacturer BMW Norbert Reithofer addresses the media during the annual balance press conference in Munich, Germany, Wednesday, March 19, 2014. Reithofer said that the company would sell more than 2 million vehicles, up from last year?¢????s 1.96 million. He also said the company is aiming for pretax profits ?¢????significantly above?¢???? last year?¢????s 7.9 billion euros (US dollar 11 billion). Its pretax earnings in 2013 were more or less flat compared with the previous year. (AP Photo/Kerstin Joensson)" data-credit="Kerstin Joensson / AP" data-mep="308450" src="http://o.aolcdn.com/dims-shared/dims3/GLOB/crop/2235x1483+0+120/resize/628x417!/format/jpg/quality/85/http://hss-prod.hss.aol.com/hss/storage/midas/455897cd039166a3deae97117 da695be/200293428/1b235ed954164a148b321b874 eb2646b.jpeg" /></a><br />
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<a href="http://www.autoblog.com/bmw/">BMW</a> is planning a fairly extensive overhaul in a bid to recoup some its annual costs, with CEO <a href="http://www.autoblog.com/tag/norbert+reithofer/">Norbert Reithofer</a> (pictured above) aiming to save three to four billion euro ($4 to $5.4 billion) per year to help keep the company's profit margins between eight and 10 percent, while also maintaining investments in production expansion and new tech. BMW's profit margins sat at 9.4 percent in 2013.<br />
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According to <em>Automotive News Europe</em>, <a href="http://europe.autonews.com/article/20140618/ANE/140619862/bmw-plans-multi-billion-cost-cuts-program-report-says">Reithofer is none too pleased</a> about costs at <a href="http://www.autoblog.com/mini/">Mini</a> and on the <a href="http://www.autoblog.com/bmw/1+series/">1 Series</a>, although neither AN nor its source story, from Germany's <em>Manager Magazin</em>, elaborate on what steps could be taken to improve losses on either project. That makes it hard to figure out just where the fat will be trimmed from.<br />
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What may happen, though, is that <a href="http://europe.autonews.com/article/20140602/ANE/140609980/bmw-plans-to-cut-100-million-euros-of-german-labor-costs-per-year">BMW attempts to trim 100 million euros</a> ($135 million) from its German labor costs each year; a solution hinted at a few weeks ago by Germany newspaper <em>Muenchner Merkur</em>. While a dramatic cost reduction, 100 million euros still doesn't begin to even approach the savings envisioned by Reithofer.<br />
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Meanwhile, the company is aiming too increase its global annual sales from 2 million units to 2.5 million by 2016, as part of its ongoing battles with <a href="http://www.autoblog.com/mercedes-benz/">Mercedes-Benz</a> and <a href="http://www.autoblog.com/audi/">Audi</a>. Part of that plan will involve <a href="http://www.autoblog.com/2014/03/28/bmw-x7-spartanburg-production-official/">increasing production in the US</a>, China and Latin America.<p style="padding:5px;backgr ound:#ddd;border:1px solid #ccc;clear:both;"><a href="http://www.autoblog.com/2014/06/18/bmw-looking-save-billions-cost-cuts/">BMW looking to save billions with cost cuts</a> originally appeared on <a href="http://www.autoblog.com">Autoblo g</a> on Wed, 18 Jun 2014 16:30:00 EST. Please see our <a href="/rss-term-of-use/">terms for use of feeds</a>.</p><h6 style="clear: both; padding: 8px 0 0 0; height: 2px; font-size: 1px; border: 0; margin: 0; padding: 0;"></h6><a href="http://www.autoblog.com/2014/06/18/bmw-looking-save-billions-cost-cuts/" rel="bookmark" title="Permanent link to this entry">Permalink</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/forward/20915005/" title="Send this entry to a friend via email">Email this</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/2014/06/18/bmw-looking-save-billions-cost-cuts/#comments" title="View reader comments on this entry">Comments</a>

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