BMW Looks to Shed About 6,000 Positions, Ends AV Partnership With Mercedes
Bavaria-based BMW says it aims to cut roughly 6,000 positions from its lineup on account of coronavirus complications. Times are tough and the manufacturer needs to tighten its belt, just like many of its peers.
The alley-oop that precedes the slam dunking of these jobs into the wastebasket will be tempting retirement packages for those of a certain age. But BMW also said it is interested in offering younger people financial assistance for full-time higher education with a guarantee of a job when they’re done — offering some amount of hope.
According to the Associated Press, demand wasn’t anywhere near sufficient to maintain all 126,000 members of BMW’s global workforce. The economic slump that’s presumed to travel in COVID-19’s wake will only further strengthen the industry’s need to cut jobs.
Additionally, BMW announced that it will put its cooperative autonomous vehicle development program with Mercedes-Benz on hold. While stated to be temporary, we doubt you’ll be hearing anything about its reclamation any time soon. Don’t think this is about stoking old rivalries, however. Both automakers have said this is a financial matter complicated by the times in which we live. That’s undoubtedly true, especially since AV development is wildly expensive and seems to have hit a speed bump of late, though there’s always a chance the German duo simply weren’t ready to become best buddies.
Officially, the two companies “arrived at a mutual and amicable agreement to concentrate on their existing development paths.” That includes working with current and/or new partners on the technology. However, both manufacturers want to make it perfectly clear that joint cooperation “may be resumed at a later date and that the two [organizations’] underlying approach to matters such as safety and customer benefits in the field of automated driving remains highly compatible.”
The BMW Group and Mercedes-Benz AG are both working separately on current generations for highly-automated driving and have achieved major progress in this field in the past. However, the BMW Group and Mercedes-Benz AG were unable to hold detailed expert discussions and talk to suppliers about technology roadmaps until the contract was signed last year. In these talks — and after extensive review — both sides concluded that, in view of the expense involved in creating a shared technology platform, as well as current business and economic conditions, the timing is not right for successful implementation of the cooperation.
“We have systematically further developed our technology and scalable platform with partners like Intel, Mobileye, FCA and Ansys,” said Klaus Fröhlich, member of the Board of Management of BMW AG, responsible for Development. “Our current technology generation offers very strong, sustainable potential: With extremely powerful sensors and computing power, our robust modular system puts us in an excellent position to offer our customers what they need for many years.”
[Image: Sklo Studio/Shutterstock]
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- Funky D I despise Google for a whole host of reasons. So why on earth would I willing spend a large amount of $ on a car that will force Google spyware on me.The only connectivity to the world I will put up with is through my phone, which at least gives me the option of turning it off or disconnecting it from the car should I choose to.No CarPlay, no sale.
- William I think it's important to understand the factors that made GM as big as it once was and would like to be today. Let's roll back to 1965, or even before that. GM was the biggest of the Big Three. It's main competition was Ford and Chrysler, as well as it's own 5 brands competing with themselves. The import competition was all but non existent. Volkswagen was the most popular imported cars at the time. So GM had its successful 5 brands, and very little competition compared to today's market. GM was big, huge in fact. It was diversified into many other lines of business, from trains to information data processing (EDS). Again GM was huge. But being huge didn't make it better. There are many examples of GM not building the best cars they could, it's no surprise that they were building cars to maximize their profits, not to be the best built cars on the road, the closest brand to achieve that status was Cadillac. Anyone who owned a Cadillac knew it could have been a much higher level of quality than it was. It had a higher level of engineering and design features compared to it's competition. But as my Godfather used to say "how good is good?" Being as good as your competitors, isn't being as good as you could be. So, today GM does not hold 50% of the automotive market as it once did, and because of a multitude of reasons it never will again. No matter how much it improves it's quality, market value and dealer network, based on competition alone it can't have a 50% market share again. It has only 3 of its original 5 brands, and there are too many strong competitors taking pieces of the market share. So that says it's playing in a different game, therfore there's a whole new normal to use as a baseline than before. GM has to continue downsizing to fit into today's market. It can still be big, but in a different game and scale. The new normal will never be the same scale it once was as compared to the now "worlds" automotive industry. Just like how the US railroad industry had to reinvent its self to meet the changing transportation industry, and IBM has had to reinvent its self to play in the ever changing Information Technology industry it finds it's self in. IBM was once the industry leader, now it has to scale it's self down to remain in the industry it created. GM is in the same place that the railroads, IBM and other big companies like AT&T and Standard Oil have found themselves in. It seems like being the industry leader is always followed by having to reinvent it's self to just remain viable. It's part of the business cycle. GM, it's time you accept your fate, not dead, but not huge either.
- Tassos The Euro spec Taurus is the US spec Ford FUSION.Very few buyers care to see it here. FOrd has stopped making the Fusion long agoWake us when you have some interesting news to report.
- Marvin Im a current owner of a 2012 Golf R 2 Door with 5 grand on the odometer . Fun car to drive ! It's my summer cruiser. 2006 GLI with 33,000 . The R can be money pit if service by the dealership. For both cars I deal with Foreign car specialist , non union shop but they know their stuff !!! From what I gather the newer R's 22,23' too many electronic controls on the screen, plus the 12 is the last of the of the trouble free ones and fun to drive no on screen electronics Maze !
- VoGhost It's very odd to me to see so many commenters reflexively attack an American company like this. Maybe they will be able to find a job with BYD or Vinfast.
Maybe they were all working on the defunct i8.
They should lay off all the idiots that are responsible for all the crappy parts they put in their cars; especially some of the plastic engine parts.