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Slump could see more BMW cuts
Allan Hall, Evening Standard3 Oct 2008
BMW has warned of a global slump in the car industry for at least nine months and today refused to rule out further production cutbacks.
US sales dropped 26% as demand for both BMW and its Mini-brand vehicles fell.
"We don't expect a recovery starting before mid-2009," said chief executive Norbert Reithofer.
The company would not comment on whether a drastic recession would result in further job losses in the UK or elsewhere.
An austerity programme already in place calls for a €6 billion (£4.7 billion) saving — resulting in 8100 job losses — to help raise profit margins.
BMW scrapped its 2008 profit forecast in August and plans to lower output by 20,000 vehicles because of declining US sales.
The company has also raised prices by 2.1% in the world's biggest economy as it grapples with the dollar's decline against the euro and falling values for cars it sells after leases expire.
