Report: BMW struggles with cost-cutting

FRANKFURT (Thomson Financial) -- BMW is struggling to reach its cost-cutting targets due to difficulties in laying off employees and high raw material costs, Handelsblatt reported.
 
BMW plans to complete the lay-off of 8,100 workers this year as part of its cost-cutting program that is targeting 500 million euros in savings during 2009.
 
"We said early on that these (job cut) figures can't be reached, "said supervisory board member and unionist Werner Neugebauer.
 
The report said while the bulk of the 5,000 temporary workers has been reduced, only a few hundred full-time employees have signed termination agreements, citing unidentified union sources.
 
A company spokesman earlier today denied the report and said BMW is "fully on track" to reach its cost-cutting targets.
 
Company sources said well above 1,000 employees have already signed termination agreements.
 
BMW is bound to a wage agreement, which bans compulsory redundancies through 2013.
 
The report also quoted analysts as saying that rising raw material costs and the weak dollar are hampering the German carmaker's efforts to cut costs and improve efficiency.
From: Automotive News Europe

Address: Bibo Road, Zhangjiang High-technology Park, Shanghai, China
Tel: 0086-21-3637-6177
Fax: 0086-21-3637-6177
Skype: eastfilters