January 21, 2009

BMW cuts 26,000 workers, may apply for state aid

Filed under: auto,Germany — DF @ 8:29 am
Tags: , , , ,

According to AutoBlog: “Lagging demand has forced BMW to cut 26,000 workers for the months of February and March and BMW’s factories in Dingolfing and Regensburg will be effected by the eliminations, which will cut 38,000 units. BMW is also reducing hours at Berlin and Landshut to better align output with demand. The reduced production hours and labor cuts won’t result in any permanent layoffs, though a prolonged sales slump could lead management at the Bavarian Motor Werks to take more drastic action. The shrinking vehicle market is also hurting BMW’s stock price, which is down 49% over the past 12 months.”

Volkswagen, Europe’s largest carmaker, will shut five German factories from Feb. 23 to Feb. 27, affecting two-thirds of its 92,000-strong German workforce. Volkswagen’s closings will affect the factory at its headquarters in Wolfsburg as well as plants in Emden, Hanover, Zwickau and Dresden, trimming output of Golf, Passat, and Phaeton models, according to Bloomberg

1 Comment »

  1. AlanC, thanks for the tip!

    Comment by DF — January 21, 2009 @ 8:32 am | Reply

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