BMW to axe 10,000 contract workers due to Covid-19

BMW to axe 10,000 contract workers due to Covid-19

BMW will not be extending the contracts for 10,000 of its contract workers, an insider familiar with the matter told Reuters. The Bavarian automaker is in the midst of implementing cost-cutting measures, chief of which is to reduce capacity.

Besides that, BMW is also temporarily ending its tech alliance with Mercedes-Benz, a move that was supposed to see both carmakers develop next-generation technologies for driver assistance systems, automated highway driving and automated parking to Level 4 standards. The goal was to introduce these systems into passenger cars by 2024, with each of them implementing said technologies independently in their respective vehicles.

“Following extensive review, the two companies have arrived at a mutual and amicable agreement to concentrate on their existing development paths, which may also include working with new partners,” the companies said in a joint statement.

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Matthew H Tong

An ardent believer that fun cars need not be fast and fast cars may not always be fun. Matt advocates the purity and simplicity of manually swapping cogs while coping in silence of its impending doom. Matt's not hot. Never hot.

 

Comments

  • JOACHIM on Jun 22, 2020 at 10:48 am

    Kesian the 10,000 BMW workers kena fired but their 10,000 management team are untouched. The failure of their company is from their incompetent managers to MANAGE the crisis but it is their downline staffs that has to bear the burden. If they were managed like Proton, none of their downline would be laid off. BMW should come to Proton and learn how they managed their business better and treated their staffs more fairly.

    Like or Dislike: Thumb up 19 Thumb down 5
    • Thats the norm in manufacturing. When orders are high and its a temporary thing, they will hire contract workers. Some company will engages directly while some uses manpower agency. When they decide they did not need the staff they either run down the contract or buy out the contract.

      This is happening even during normal time.

      Like or Dislike: Thumb up 5 Thumb down 3
      • Instead of firing poorly paid contract workers, they shud layoff their highly paid execs who are doing nothing for their salaries except cutting the heads of those below them.

        Like or Dislike: Thumb up 8 Thumb down 3
    • Carlos 30 on Jun 22, 2020 at 9:49 pm

      That’s why they are call contract workers. Hired on contract when production demand is there. Made to be terminated when production is low…. business 101.

      Like or Dislike: Thumb up 0 Thumb down 0
      • JOACHIM on Jun 23, 2020 at 11:14 am

        Most of these contracted staff are from other countries, similar status to our foreign workers. BMW as a German national carmaker is not being fair to their German rakyat that are buying their cars. They should just close down and relocate to Poland or Romania.

        Like or Dislike: Thumb up 1 Thumb down 0
  • vivizurianti on Jun 22, 2020 at 2:06 pm

    Kesian them. Lucky that Abang abang worker at P1 and P2 still employed in our SyukurLand. Can cari makan and support family.

    Like or Dislike: Thumb up 7 Thumb down 2
 

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