Automotive Fleet
MenuMENU
SearchSEARCH

Search for Profitability Leads to BMW Job Cuts

FRANKFURT, GERMANY — German car maker BMW announced a plan to shed thousands of jobs in its German workforce to boost profitability, following in the tracks of Daimler and Volkswagen.

by Staff
December 21, 2007
3 min to read


FRANKFURT, GERMANY — German car maker BMW announced a plan to shed thousands of jobs in its German workforce to boost profitability, following in the tracks of Daimler and Volkswagen.

In the coming months, "several thousand jobs" will disappear, a company spokesman said.

Ad Loading...

He gave no specific target figure, but the news magazine Der Spiegel suggested on its Internet site that 8,000 jobs would disappear in 2008, about seven percent of BMW's salaried staff.

In the past few years, big German auto manufacturers Daimler and Volkswagen, and Peugeot-Citroen in France, have laid out broad plans to restructure plants in western Europe, a slumping market.

Emerging economies meanwhile offer cheaper labor and much stronger growth prospects.

BMW had not followed the trend, but after slipping in profitability against its rivals it is now trying to catch up.

Job cuts are to focus on German sites and blue-collar posts, but should not involve outright redundancies, the spokesman said.

Ad Loading...

BMW will not renew part-time contracts, "probably" the "main" target of the measures unveiled on Friday.

But thousands of full-time posts will also disappear, either workers who accept incentives to leave or owing to "natural fluctuations" such as retiring workers who are not replaced. "We need engineers and skilled workers," the spokesman told AFP. "But we cannot increase productivity" in the workshops, he added.

The target is clear: "BMW wants to increase profitability" by cutting production costs, the spokesman said.

Efforts that focused on development costs of new models did not suffice, he added.

A spokesman for the labor union IG Metall told AFP: "We are surprised by the number and by the timing of the announcement, but we knew there would be job cuts at BMW."

Ad Loading...

No labor protest was foreseen, he added.

In September, BMW boss Norbert Reithofer announced a five-year strategic plan dubbed "Number One" to resolve a fundamental problem at the company.

In the past few years, BMW has regularly increased its sales, gaining on its direct rival, Mercedes-Benz, while seeing profit margins slip steadily.

In Germany, competition is fierce in the high-end market between Daimler (Mercedes-Benz), BMW and Volkswagen's Audi brand.

BMW lags behind Daimler, aiming for a 10-percent profit margin by 2012, while Daimler hopes to reach the same target two years earlier.

Ad Loading...

Audi is also turning in increased sales, and expects to attain a profit margin of eight percent in the next two or three years.

In September, Reithofer had suggested several ways of meeting the challenges facing his company, either by a large acquisition, a restructuring of personnel or a complete reorganization of the car maker.

In the end, it chose to make broad job cuts, following the example set by competitors.

BMW is expected to provide details on the jobs plan in January or February.

Topics:Operations

More Operations

Turning Fleet Payment data into executive insights blue podcast thumbnail
OperationsAugust 5, 2026

Turning Fleet Payment Data into Executive Insights

Does data alone drive results in operations?

Read More →
Graphic promoting Automotive Fleet's 2026 Personal Use Survey with the text "Have a Personal Use Policy? We Want to Know!" encouraging fleet managers to complete the annual industry survey.
Operationsby StaffAugust 5, 2026

Automotive Fleet Opens 2026 Personal Use Survey for Commercial Fleet Managers

Commercial and corporate fleet managers are invited to share how their organizations handle company vehicle personal-use policies, charges, and driver eligibility.

Read More →
A shot of a Volvo electric vehicle with a man charging it in front of a residence.
SponsoredAugust 1, 2026

Top 50 Executive Fleets

It is that time of year again! Time for the 2026 list of the Top 50 Executive Fleets, presented by Automotive Fleet and Volvo as part of its annual Fleet 500. Download now to see this year's list of companies!

Read More →
Ad Loading...
Gary Van Orden Retirement
Operationsby Jeanny AbrahamJuly 31, 2026

Gary Van Orden Retires After Nearly Four Decades in Commercial Fleet

From answering customer calls at Ford Motor Company to leading fleet sales across multiple OEMs and a fleet management company, Gary Van Orden's career reflects nearly four decades of leadership in commercial fleet.

Read More →
an Automotive Fleet podcast thumbnail
OperationsJuly 31, 2026

How Stellantis Plans to Get Ahead of Fleet Downtime

Vehicle acquisition may grab the headlines, but fleet uptime increasingly determines operating success. Darren Bradshaw of ‪Mopar‬ North America gives the details.

Read More →
A lineup of Hyundai vehicles with overlay text announcing the 2027 Commercial Fleet Program, highlighting new fleet incentives for eligible commercial and government buyers.
Operationsby News/Media ReleaseJuly 31, 2026

Hyundai Releases 2027 Commercial Program Incentives 

The 2027 Model Year "Fleet Street Incentives" are available to commercial and government fleets.

Read More →
Ad Loading...
Chris Brown of Automotive Fleet and Lauren Fletcher of Work Truck pose beside a Soap Box Derby car in a Team Brown vs. Team Fletcher race graphic benefiting The Hourglass Foundation.
Operationsby News/Media ReleaseJuly 30, 2026

It's All Downhill from Here! Fleet Industry Raises $22,000 for Skilled Trades Scholarships

Work Truck’s Lauren Fletcher and Automotive Fleet’s Chris Brown turned a friendly racing rivalry into $22,000 for automotive technology and skilled trades scholarships.

Read More →
Commercial Fleet
SponsoredJuly 23, 2026

The Top 300 Commercial Fleets

The Top 300 Commercial Fleets: See the List

Read More →
Cover of the "Top 50 Green Fleets" report presented by Automotive Fleet and Inspiration Fleet, featuring an aerial nighttime photo of a lit highway interchange with looping ramps.
SponsoredJuly 16, 2026

The Top 50 Green Fleets

The List Is in: The Top 50 Green Fleets

Read More →
Ad Loading...
A car dealership with added inscription "Every fleet vehicle eventually becomes local."
Operationsby Chris BrownJuly 15, 2026

Your Local Dealer Knows More Than You Think

Your local dealer can provide an information advantage that extends well beyond courtesy deliveries.

Read More →