Report: BMW preparing massive cost cuts to save billions…watch out build quality!
Cost-cutting is a term that no auto enthusiast likes to hear at all, especially since the result of cost-cutting usually means a complete dilution of brand identity while putting build quality and reliability in jeopardy. Hey, remember when Mercedes-Benz cut major cost corners in the late 1990s? Yea, it wasn’t good.
Well, either way, AutomotiveNews reports that BMW is seeking to save three to four billion euro, or the equivalent to $4 to $5.4 billion per year to keep the company’s profit margins between eight to 10 percent while maintaining product expansion and new research and development.
According to the head bean-counter, Norbert Reithofer, he is unsatisfied about the costs put into Mini and the 1-Series. Specifics weren’t shared about what BMW plans on doing to cut costs, but either way, the brand better take care with their moves.
Source: AutomotiveNews Europe