BMW management and labor have reached an agreement on evaluation to decrease costs that prevents “drastic measures”, the German automaker stated on Wednesday.
BMW had been in talks with labor representatives and its leading providers as it looks to achieve cost savings of over 12 billion euros ($13.23 billion) by 2022.
The agreement involves decreasing a payout plan for workers based on company profits, as well as modifications to Christmas and other bonuses for some employees. The measures are effective from the next year.
The announcement comes a day after following Volkswagen’s luxury premium brand Audi’s statement that it would decrease one in 10 jobs, freeing up billions of euros to fund its transition toward electric vehicle production.
“We have achieved a solution based on solidarity. This permits us to avoid drastic measures that others are presently taking to reduce their costs,” CEO Oliver Zipse stated.
Automakers have been having a hard time with an auto industry downturn, generally in China, and the need to boost investment in electric vehicles as several countries move to eventually ban standard combustion engines.
Competitor Daimler along with the car providers Continental nd Osram have also recently announced staff and cuts in their expenses.