BMW TO SLASH 8,000 JOBS IN GERMANY

Written by Michael Thervil

BMW TO SLASH 8,000 JOBS IN GERMANY

[BMW 8,000 JOBS GERMANY] With international oil and gas prices surging, so is the cost of purchasing a BMW. It was reported that the German auto manufacture will slash a total of 8,000 jobs in Germany to reduce production cost and to combat declining sales in China. The 8,000 employees that will be affected constitute roughly 5% of its German workforce.  It should be noted that Chinese EV’s (Electric Vehicles) have essentially taken over China as the dominant player in the Chinese auto industry as they account for 63% to 67% of all auto sales in China. Although BMW has offered a buyout for its employees in its planning, research and development, employees who work on the factory floor would be exempt from any such buyout.

Other German auto manufacturers such as Volkswagen and Porsche will be also cutting down their workforce by an estimated 100,000 and 5,000 jobs respectively. With all of the downsizing booth auto manufacturers are facing, potential customers have begun to worry about if and possibly when the production quality of these auto manufacturers will take a hit as well. Market analysts have not only rung alarmed bells to inform the world that Germany is in recession as has been for a while, but they are also struggling to see a way out for German auto manufactures as Chinese EV’s accounts for an estimated 70% in all international EV sales. In Europe Chinese EV accounts for 15% of all auto purchases and is predicted to continue to grow as technological and advanced manufacturing developments occur in the future.

With all of this occurring, the only question that remains is how will German auto manufacturers such as BMW adapt to not only the demands of the consumer market, but how will BMW maintain it’s relevance amongst car buyers of all demographics who are always looking for cheaper, more fuel efficient, and technologically advanced cars?