[The Automotive Enthusiast]

BMW is reportedly drafting a cost-cutting plan that aims to save up to 4 billion euros ($5.4 billion USD) annually.

CEO Norbert Reithofer is said to have been disappointed by high costs from both the BMW 1-Series lineup and the entire Mini brand, according to a report by German outlet Manager Magazin.

Development costs for several new models and new powertrains have been cited as contributing factors to lower margins in 2013 compared to the previous year, however the company still expects a significant gain in overall profits from the expanded lineup.

Reithofer has reportedly sought help from management consultancy firm McKinsey & Co. to help formulate a plan, which is expected to run through 2020.

The company earlier this year disclosed plans to reduce the percentage of revenue spent on research and development. The latest report suggests cost-cutting measures will also target production operations, though the company has not publicly outlined specific plans.

Read more: http://www.leftlanenews.com/bmw-cost...#ixzz352qcO9PS