AUTONEWS

China effect: BMW to cut ‘as many as 8,000 jobs’

BMW is planning to cut as many as 8,000 jobs in Germany, according to reports, in the latest sign of Europe’s largest carmakers reducing costs under pressure from Chinese rivals.

The Munich-headquartered company has started a voluntary redundancy programme agreed with employee representatives, a BMW spokesperson said on Wednesday.

The company and its ​works council had agreed a severance ⁠programme targeting the administration and development ​divisions, the spokesperson said. Production operations are excluded. BMW’s total workforce is about 160,000.

Germany’s carmakers have come under intense pressure in recent years with the rise of Chinese competitors that have quickly come to dominate in the electric vehicle market. Chinese manufacturers have also launched a fierce price war in their home market, which had previously been a lucrative source of export earnings for European brands including BMW.

Europe’s carmakers have also had to find cash for their own transition from petrol to electric, and cope with the impact of US tariffs. Several manufacturers – including Volkswagen, Stellantis and Ford – have turned to partnerships with Chinese rivals to help them build and sell in Europe.

BMW’s cuts come after Milan Nedeljković, who was previously head of production, took over as chief executive in May.

A spokesperson said: “The BMW Group is proactively shaping the profound changes taking place in its operating environment. These include the technological transformation of the automotive industry, geopolitical uncertainties, changing market conditions and developments in China.”

Volkswagen, Germany’s largest carmaker by volume, confirmed on Friday that it would cut as many as 100,000 jobs from its total workforce of 650,000. The plans include closing four factories and halving the number of models produced.

Porsche, the sports car brand part-owned by Volkswagen, is also undergoing a severe restructuring. Another 5,000 job cuts were agreed this week, taking total planned redundancies to 9,000 – a fifth of its workforce – by 2035. The Stuttgart-based company reported a €1.4bn (£1.2bn) profit before tax on Wednesday, up from €1.1bn a year earlier.

Porsche’s sales in China slumped by 30% to 14,500 in the first half of 2026, faster than the 17% decline across the group as a whole. Donald Trump’s withdrawal of subsidies for electric cars such as Porsche’s Taycan also hit North American sales.