While many automakers have resumed manufacturing and commercial operations in factories and offices around the world, the past few months have been tough for everyone in the industry. Luxury automakers have been hit tons of times lately, and BMW is the latest to make changes to help them float since the coronavirus changed the automotive landscape several months ago. Costs have piled up while production centers and dealerships around the world have remained closed, as car sales have plunged to unprecedented numbers in world markets.
According to Reuters, a source at BMW has confirmed that the German manufacturer plans to cut at least 10,000 contract workers, with the aim of reducing capacity and reducing rising costs. BMW said it had reached an agreement with the works council on a satisfactory package consisting of “personnel measures for a sustainable future”. As with any business, letting people go is the last resort, and while it may not be the most ideal configuration, steps have been taken to ensure that there is compensation sufficient.
Other luxury European automakers instituted company-wide changes in early June, including Bentley and Aston Martin, and we’re pretty sure BMW won’t be the last. At the start of May, BMW Australia was also inundated with dealership floors with demonstration and fleet cars to boost sales reports, a move that could be against them in the future.
Linked to recent internal changes, the announcement of the definitive suspension of the development alliance between BMW and Daimler indicates that after extensive reviews, the two companies have agreed to focus on their separate and existing development paths. Although it is possible to resume the project, the two companies are free to work with other partners.