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Car maker: BMW relies on large luxury cars

2019-10-10T14:11:27.241Z


BMW wants to concentrate on the luxury business and plans next year to sell more than twice as many cars in this class as before. At the same time, staff costs should be lowered.



BMW plans to sell more than twice as many luxury cars next year as it did last year. Demand in this class is increasing worldwide, and BMW has greatly expanded its offer with the SUV X7 and the new 8 Series, said CFO Nicolas Peter. Last year, BMW sold more than 65,000 luxury cars, with more than 110,000 expected this year and 135,000 to 140,000 next year.

The expansion of the luxury segment with its comparatively high profit margin is an important element in keeping the return in the corridor of 8 to 10 percent of sales.

Because "the electrification is not free of charge," said Peter: The investments are high. The personnel costs, which account for almost half of the total costs of the Group, would therefore have to be reduced.

There will be no job losses by the end of 2020. But the increase in personnel at the new plant in Mexico and at the battery center near Munich would have to be compensated for elsewhere by staff cuts, said Peter. Not every job vacancy will be filled, the 40-hour contracts will be negotiated, and BMW will no longer pay employees twice the annual premiums of the competition.

In view of the possible hard Brexit on October 30, BMW closes its mini-plant in Oxford a few days before and after. Subsequently, the production should continue quickly, in November there is the first fully electric Mini run off the line. Some of the duties due from November onwards BMW would pass on to customers: "The models from Oxford will be more expensive, the plan is in the drawer," said Peter. On questions about the future of this small car, he made it clear: "Mini is a strategic part of BMW."

Source: spiegel

All business articles on 2019-10-10

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