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BMW to Reduce Workforce in EU6 Billion Savings Plan (Update1) (Bloomberg ÔÇô December 21) -- Bayerische Motoren Werke AG, the world's largest luxury carmaker, will scale back its workforce under a plan announced three months ago to boost profit with 6 billion euros ($8.6 billion) in spending cuts. The carmaker will eliminate jobs by not replacing people who leave and through contract agreements on work-time flexibility, said Mathias Schmidt, a spokesman at Munich-based BMW. Schmidt wouldn't confirm a report today in German magazine Der Spiegel's online edition that 8,000 positions will be cut next year. Chief Executive Officer Norbert Reithofer outlined the five- year savings program in September after BMW's profitability lost ground to Daimler AG's Mercedes-Benz Cars division. The automotive division aims by 2012 to raise its return on capital employed to 26 percent from 22 percent last year, and reach a return on sales of 8 percent to 10 percent, versus 5.9 percent.
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