BMW to decrease production cost per vehicle by 25 percent

BMW prepares major production cost cuts by the middle of the decade, one of the automaker’s board members said.

“We will decrease the production costs per vehicle by 25% by 2025 – compared with the level in 2019,” said Milan Nedeljkovic, BMW’s board member in charge or production, according to German newspaper Handelsblatt.

Last month BMW said it remained on course to fulfill its profit targets for 2021, regardless of increasing raw material costs, although a worldwide chip shortage will worsen and may affect production in the second quarter.