BMW Group specifies changes to personnel structures in the course of implementing strategy Number ONE

Lower personnel costs by improving efficiency Continuing demand for
specialists and executive staff Commitment to Germany as key production
location Munich. As the BMW Group implements the new strategy Number
ONE, the company is working hard to secure its future. A key element in
this effort is the goal of turning profitability figures around. To
reach their goals, the BMW Group intends to realize improvements on the
cost and performance side amounting to EUR 6 billion by 2012, compared
to initial plans. The greatest savings potential has been identified in
the areas of material, production and development costs. Flexibility
as a traditional key strength of the BMW Group Another step towards
reaching the target rate of return is lowering personnel costs.
Substantial efficiency improvements, mainly in production, allow for the
reduction of staff capacities. To this end, the BMW Group implements a
whole series of flexibility measures. "Flexibility has long been
a key strength of the BMW Group", said Ernst Baumann, Member of
the Board of Management of BMW AG, responsible for Human Resources, in
Munich on Wednesday. "We have always been able to ride the ups and
downs of the market." Planned steps include the application of
various working time models, time accounts, partial retirement as well
as temporary staff. The number of temporary staff working for the BMW
Group in Germany is supposed to be cut by a total of approximately
5,000 by the end of the year. About 2,500 people have already left the
company. Ernst Baumann: "Temporary workers are not employed by us
but by their respective temporary employment agencies. There they will
keep their jobs because the current market has a high demand for
temporary staff." Reduction of permanent staff on voluntary basis
Cuts at the BMW Group's domestic production locations will affect 2,500
employees or around three percent of an overall 80,000 permanent staff
in Germany. "What matters to us is that bringing the headcount
down must happen on a voluntary basis - in accordance with the BMW
Group's basic principles to which we have committed ourselves. These
include that leadership is founded on mutual trust, respect and
fairness", Baumann said. The three percent reduction of permanent
staff applies to all locations but Leipzig where the BMW Group will
only make some minor adjustments. Of the 28,000 permanent staff abroad
600 positions will be cut, mainly at the more than 40 global sales
subsidiaries. Further demand for specialists and executive staff In
the next few years, the BMW Group will create new mobility concepts and
will open up additional business areas in the Financial Services
segment. These steps will require new knowledge structures. Management
and employee representatives are currently discussing ways to achieve
this change. The goal is drawing up a company agreement on "Skills
Management". Its purpose is to get suitable employees ready for
new assignments via advanced training and qualification programs.
However, as this will not satisfy demand completely, job cuts are
counterbalanced by new jobs as well. The BMW Group will continue to
recruit highly qualified and skilled workers and executives. In 2008,
the company plans to open up approximately 500 new positions. Ernst
Baumann: "Engineering our successful future has always been a key
strength of the BMW Group. Our strategy Number ONE provides us with the
means to continue to do so in the future." Germany to remain key
production location In order to uphold Germany's significance as a
strong base for the company, the BMW Group intends to further
strengthen their competitiveness. "For this purpose efficiency
improvements are imperative - efficiency improvements that consistently
lead to more output per employee", Baumann emphasized. Majority
of staff employed in Germany, majority of vehicles sold abroad The BMW
Group is among the few companies that employ the majority of their
staff in Germany while selling most of their products abroad. Last year,
the BMW Group sold more than 1.5 million automobiles worldwide, 285,000
thereof in Germany. This means that over 80 percent of all units
produced are sold outside of Germany. The company employs close to
108,000 permanent staff worldwide, 80,000 or three quarters thereof in
Germany. If you have any questions please contact: Corporate
Communications Michael Rebstock, Business Communications Telephone: +49
89 382-20470, Fax: +49 89 382-24418 Marc Hassinger, Business and
Finance Communications Telephone: +49 89 382-23362, Fax: +49 89
382-24418 Internet: www.press.bmwgroup.com E-mail: presse@bmwgroup.com