Job cuts, more direct selling to customers, cheaper parts, and fewer model variants are the key elements to BMW's cost-cutting program, the firm's new CEO has said. The pressure to cut costs at the premium brand increased sharply after profit margins dipped to 3.6% in the first half of the year as a result of collapsing sales in China.
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View Price on AmazonThe cost-cutting measures are expected to help BMW improve its profit margins, which have been affected by the decline in sales in China. The company plans to reduce its workforce, increase direct sales to customers, and use cheaper parts to reduce costs. Additionally, BMW will reduce the number of model variants, which will help to simplify its production process and reduce costs.
Source: autocar.co.uk
