BMW axing more than 100 managers as it speeds up cost-cutting

{"text":[[{"start":7.95,"text":"BMW is culling more than 100 managers as it accelerates cuts to white-collar overheads amid plummeting sales in China and the impact of US tariffs."}],[{"start":18,"text":"New chief executive Milan Nedeljković, in charge since May, on Wednesday warned profitability would remain subdued for years, with the German carmaker forecasting an operating margin of just 3 per cent to 5 per cent in 2028."}],[{"start":33.5,"text":"The axing of about 20 per cent of BMW’s 65 senior vice-presidents — the level directly below the management board — as well as management positions below them will involve a “three-digit number” of managerial staff, according to a person familiar with the matter."}],[{"start":48.25,"text":"Some of the cuts will be on top of those announced in June which, according to people briefed on the details, will entail the loss of about 8,000 back-office jobs, more than half in Germany."}],[{"start":60.9,"text":"“We are improving our structures and cost base so we can meet the increasingly fierce competition,” Nedeljković said in a statement."}],[{"start":68.5,"text":"BMW, one of the three big German carmakers, produced 2.5mn vehicles last year, generating €133.5bn in sales. Its shares are down more than 40 per cent this year as revenue fell 8 per cent between January and June while pre-tax profit plunged 29 per cent."}],[{"start":null,"text":"

"}],[{"start":88.5,"text":"BMW has reached an agreement with Germany’s powerful union and will be seeking voluntary redundancies, making buyout offers to eligible staff from October. The carmaker said it was looking at other areas to reduce costs, “with decisions expected by spring 2027”."}],[{"start":104,"text":"Unlike larger rival Volkswagen, which is planning to cut up to 100,000 jobs in Germany over the coming years, BMW is not reducing its domestic assembly line workforce. The company has invested €2bn in its manufacturing footprint in the country, including its Munich and Dingolfing plants and a new battery facility in Bavaria, as it starts the serial production of the eighth-generation 3 Series, its flagship model."}],[{"start":133.05,"text":"The company is preparing the launch of 40 new models and model updates over the next few years. It said on Wednesday that one of the new vehicles would be an entry-level premium electric vehicle comparable to its 1 Series for the European market. On Wednesday it said it would end its 2 Series Active Tourer, a small family car."}],[{"start":151.4,"text":"For the US, it is working on a supersized SUV that will be larger than its current flagship model, the X7."}],[{"start":158.55,"text":"Nedeljković, who announced the back-office restructuring weeks after replacing his predecessor Oliver Zipse, on Wednesday told analysts that group operating margin over the coming two years will only rise to between 3 per cent and 5 per cent, a level normally seen at volume rather than premium carmakers. In 2026, the group will only generate an operating margin of 1 per cent to 3 per cent, compared with the 4 per cent to 6 per cent Zipse initially promised."}],[{"start":186.55,"text":"BMW does not expect to return to its longstanding 8 per cent to 10 per cent target until “early next decade”, meaning its profitability will remain well below historical targets for more than five years."}],[{"start":198.4,"text":"Weeks after taking office, Nedeljković said the Munich-based group, which also owns the Mini and Rolls-Royce brands, will miss its 2026 operating profit target of 4 per cent to 6 per cent of sales."}],[{"start":217.55,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790827284_2044.mp3"}