Home » Industrial relations » National industrial relations » Germany: BMW reaches agreement with works council to cut costs without resorting to staff reductions Germany: BMW reaches agreement with works council to cut costs without resorting to staff reductions The fast-paced shift towards electricity-powered vehicles and the digitalisation of production is piling pressure on the German automobile industry, a central pillar of the country’s economy. Like Volkswagen and, more recently, Audi before them, BMW has found itself needing to cut costs in order to protect its profit margins and level of investment in research and development. However, unlike its competitor based in Ingolstadt, the Munich-based manufacturer has managed to negotiate a company agreement with its works council that should allow it to save some €12 billion by 2022, without any job cuts. Savings in the area of personnel will be achieved mainly through reductions to a range of bonuses. Through . Published on 29 November 2019 à 14h24 - Update on 29 November 2019 à 16h41 Resources BMW v Audi – two ways of saving. At first sight, the difference between Audi and BMW’s approaches to cost cutting appears significant. In the space of the week, the former announced that it is to cut 9,500 jobs by 2025 in order to achieve €6 billion of cost savings, while the latter said that, following an agreement reached with its works council,… Need more info ? Contact mind's on-demand study service Which service do you want to contact :WritingCommercial serviceTechnical SupportFirst name Last name Organization Function email* Object of the message Your messageRGPD J’accepte la politique de confidentialité.PhoneThis field is for validation purposes and should be left unchanged. Essentials Les dernières publications Supporting parenthood in the workplace: a win-win strategy Supporting employee carers: a CSR challenge Analyzes Les dernières publications Paternity leave: data observations from 41 countries EU: during H1 2022 five EU Member States have raised their minimum salary levels