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BMW Plans Management Cuts as AI Reshapes Operations
(MENAFN) German automaker BMW plans to reduce the number of its divisions and related management positions by 20% by mid-2027 as it increases the use of artificial intelligence to improve efficiency and profitability.
The company announces the restructuring during its Capital Market Day, saying similar reductions will be introduced at lower levels of the organization.
The changes follow an agreement reached with BMW’s Works Council in July and include a voluntary severance program, according to the automaker.
BMW says AI will be integrated more extensively across areas including vehicle development, purchasing, manufacturing, sales and aftersales to speed up processes and improve decision-making.
Chief Financial Officer Walter Mertl says the technology will support “more agile and efficient development, leaner structures and faster decision-making.”
The company aims to bring its automotive operating profit margin back to its long-term range of 8% to 10% by the beginning of the next decade. BMW sets an interim target of 3% to 5% for 2028.
As part of its broader restructuring, BMW also plans to simplify its vehicle range, increase localized manufacturing in China and launch a compact electric vehicle designed primarily for the European market in 2028.
The company announces the restructuring during its Capital Market Day, saying similar reductions will be introduced at lower levels of the organization.
The changes follow an agreement reached with BMW’s Works Council in July and include a voluntary severance program, according to the automaker.
BMW says AI will be integrated more extensively across areas including vehicle development, purchasing, manufacturing, sales and aftersales to speed up processes and improve decision-making.
Chief Financial Officer Walter Mertl says the technology will support “more agile and efficient development, leaner structures and faster decision-making.”
The company aims to bring its automotive operating profit margin back to its long-term range of 8% to 10% by the beginning of the next decade. BMW sets an interim target of 3% to 5% for 2028.
As part of its broader restructuring, BMW also plans to simplify its vehicle range, increase localized manufacturing in China and launch a compact electric vehicle designed primarily for the European market in 2028.
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