BMW is planning a fairly extensive overhaul in a bid to recoup some its annual costs, with CEO Norbert Reithofer (pictured above) aiming to save three to four billion euro ($4 to $5.4 billion) per year to help keep the company's profit margins between eight and 10 percent, while also maintaining investments in production expansion and new tech. BMW's profit margins sat at 9.4 percent in 2013.

According to Automotive News Europe, Reithofer is none too pleased about costs at Mini and on the 1 Series, although neither AN nor its source story, from Germany's Manager Magazin, elaborate on what steps could be taken to improve losses on either project. That makes it hard to figure out just where the fat will be trimmed from.

What may happen, though, is that BMW attempts to trim 100 million euros ($135 million) from its German labor costs each year; a solution hinted at a few weeks ago by Germany newspaper Muenchner Merkur. While a dramatic cost reduction, 100 million euros still doesn't begin to even approach the savings envisioned by Reithofer.

Meanwhile, the company is aiming too increase its global annual sales from 2 million units to 2.5 million by 2016, as part of its ongoing battles with Mercedes-Benz and Audi. Part of that plan will involve increasing production in the US, China and Latin America.


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  • 55 Comments
      Scooter
      • 6 Months Ago
      What about all these silly wedge/coupe CUVs, M-junk and 4 door gran coupes? Maybe start there. They're pushing 80 models/variants as it is.
        Edsel
        • 6 Months Ago
        @Scooter
        BMW won't stop until they make a 2 door sedan and assign the numerical series designation of "0".
        Chrstopher
        • 6 Months Ago
        @Scooter
        100% correct, Scooter. Way too many models and options - they are trying to appeal with a model for everyone. Get rid of the GT models - they are not moving out the door. Drop the 1-series - it's of little value compared to the 3-series. The X6 is an abomination - dump it. Stay classy - 3,5,7 series two and four-door variants, X3, X5, Z4 and iSeries for the hybrid/electric crowd. That's it - and start innovating and getting more aggressive on the designs. The 3/5/7 all look like the same thing in small, med, large.
      • 6 Months Ago
      [blocked]
        Jai
        • 6 Months Ago
        well said
        Darren McLellan
        • 6 Months Ago
        I used to work in manufacturing and got so freaking sick of the cost cutting a holes. When you MAKE something you will have costs. That's just way it works. BMW lost me over a decade ago. SUVs and 4 door "coupes" and M3 crap wagons are just the tip of the problem. Jezza is spot on when he calls them cock cars.
      Gorgenapper
      • 6 Months Ago
      Cut costs, cut quality.
        david.bergman1
        • 6 Months Ago
        @Gorgenapper
        Not necessarily. They can renegotiate labor contracts, take new bids for cheaper transport contracts, move upmarket where the higher profit margins are.
      _I_I_II_I_I_
      • 6 Months Ago
      they have twice as many body styles/models as they need, start with those.
        BlackandMild
        • 6 Months Ago
        @_I_I_II_I_I_
        I agree....... 1, 2, 3, 4, 5, 6, 7, 8..........on and on until possibly infinity and they all look like larger and smaller versions of themselves- BMW would be fine if they could grasp the simple concept of building way fewer vehicles that are RELIABLE like Lexus has done consistently year after year- Several folks I know that have Bimmers, cannot wait to get rid of them fast enough after the maintenance warranty expires-
          • 6 Months Ago
          @BlackandMild
          [blocked]
      AGSHOP
      • 6 Months Ago
      then stop with the redundant models 3/4 3 grand touring 4 grand touring x4
      Michael Scoffield
      • 6 Months Ago
      Maybe they should stop doing 100 variations of the same model.
      Avinash Machado
      • 6 Months Ago
      Get rid of the crazy GT sedans.
      Spartanator
      • 6 Months Ago
      I think everyone missed this pretty significant tidbit. "...to help keep the company's profit margins between eight and 10 percent." If BMW is only averaging 8% to 10% profit, especially at their current prices, then they really need to audit their entire company's books to see where they're spending $$$.
      rsxvue
      • 6 Months Ago
      Aren't they switching over to only two platforms too? Seems like they're going down a very slipper slope. This is coming from a company that has 5+ variations of the same model.
      NY EVO X MR GUY
      • 6 Months Ago
      Usually, things go bad when you cost-cut wrecklessly. Quality will eventually suffer.
      truewhiteboy
      • 6 Months Ago
      While I do like the 1 series (especially as the 135), it never seemed like it would be a money maker for them.
      Teleny411
      • 6 Months Ago
      They should either use "Triumph" which they own or buy Saab for the Fwd mass market cars. That way people can feel like the are getting a BMW on the sly & not tarnish the BMW brand. So they can produce the cheap cars that they so desperately want in their portfolio.
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