BMW could cut production costs by 25% per vehicle by 2025
June 21, 2021
BMW is reported to be planning production cost cuts of 25% per vehicle by 2025, according to Milan Nedeljkovic, BMW board member in charge of production, who recently spoke with German newspaper Handelsblatt.
Although details of how these cuts would be made were not specified, the move is seen as a bid to allow the company to become more competitive with other automotive brands, such as Volkswagen, Daimler and Tesla.
Last month, BMW said it remained on course to meet its profit targets for 2021 in the face of increasing costs of raw materials. A worsening global chip shortage may, however, hit production in the second quarter.