BMW to step up job cuts as China woes deepen
<p>Frankfurt, Germany: BMW said Wednesday that it would step up planned job cuts as it reported a drop in third-quarter profit, hit by cutthroat competition and falling demand in China, the world's largest car market.</p> <p>Chief executive Milan Nedeljkovic said he could not give a number for the new cuts but was ready to make as many as required.</p> <p>"We'll go as far as our feet…
BMW announced a surge in planned job cuts on Wednesday as it disclosed a decline in third-quarter profits, primarily due to intense competition and dwindling demand in China, the world's premier automobile market. Chief executive Milan Nedeljkovic refused to disclose the exact number of additional layoffs but indicated he is prepared to make as many as necessary. "We'll go as far as our feet will carry us," Nedeljkovic stated during a conference call, adding, "And as far as makes sense for us."
The slump in sales within China has necessitated significant adjustments across Germany's automobile sector. Mercedes-Benz plans to resume its own retrenchment initiatives, while Volkswagen aims to eliminate 120,000 jobs globally across its 10 brands by 2030. Initial reports from July suggested BMW intended to execute 8,000 job cuts by the end of 2027 as part of its restructuring program. However, heightened interest in the latest redundancy scheme could compel the automaker to expedite the process.
Nedeljkovic revealed that the company will likely complete the program within a short timeframe due to the highly positive response to the redundancy scheme. This early success presents BMW with an opportunity to further streamline its structures. In the three months leading up to the end of September, BMW reported a 15% decrease in net profit to 1.45 billion euros ($1.6 billion), with overall vehicle deliveries falling 6.3% year-over-year. The downturn was largely attributed to China, where sales plummeted by 24.8%.
Despite these challenges, BMW aims to shift a greater portion of its Chinese vehicle supply chain back to the country to bolster its market position. CEO Nedeljkovic emphasized the valuable insights gained from the Chinese operations, particularly in the development of driving assistance software in collaboration with local partner Momenta. "There's a very intense exchange we have with our business in China," he noted, highlighting a mutual exchange of learning and technology transfer legally permitted.
Written by urgent.news from The Peninsula Qatar Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
