FRANKFURT -- BMW CEO Norbert Reithofer has hired management consultants from McKinsey to help draw up cost cuts aimed at saving between 3 billion to 4 billion ($4 billion to $5.4 billion) euros a year, a German business magazine said.
Reithofer is disappointed with costs at the company's Mini brand and for the BMW 1-series compact car, Manager Magazin said in a report Wednesday, citing company sources.
In a statement on Wednesday, BMW said in order to remain competitive amid rising costs, the company would seek to lower annual expenses "by several hundred million euros a year."
The cost savings are aimed at maintaining BMW's high profitability despite the company's growing investments in new drivetrain technologies, production expansion in markets such as the United States, Latin America and China, and the company's target to increase annual vehicle sales to 2.5 million by 2016 from nearly 2 million last year.
BMW has been investing heavily in new models and alternative powertrains for hybrid and electric cars to stay ahead of rivals Audi and Mercedes-Benz, which both target BMW's position as the top-selling global premium automaker.