BMW GROUP RESPONDS TO ONGOING MARKET WEAKNESS

Volumes adjusted while securing jobs
Selective short-time work at various sites to supplement existing measures

Munich. Conditions remain challenging on the international automotive markets.
This trend also has an impact on the BMW Group. Thanks to a number of
flexibility instruments the company has been able to adjust production early to
weaker demand over the past few months, while the same time safeguarding jobs.
Flex-time accounts have been reduced and leave taken for this purpose. Greater
use has been made of sabbaticals and flexible deployment of employees within
the BMW Group's production network. In addition, the company also made
extensive cutbacks in the number of temporary workers, as earlier reported.

Management and employee representatives have now agreed to expand the
initiatives for adjusting production volumes to include selective short-time
work at specific plants. The goal is to achieve the necessary cost reductions
while at the same time securing jobs. This measure is restricted to the
Dingolfing, Regensburg, Landshut and Berlin facilities. In Berlin only brake
disc production for automobiles will be affected and not motorcycle production.
A total of approximately 26,000 employees will work short-time on certain days
during the months of February and March (Dingolfing 15,000, Regensburg 8,000,
Landshut 2,700, Berlin 190). There are no plans for short-time work at other
German vehicle production plants such as Munich and Leipzig.

Even working short-time, the net income of employees with tariff contracts will
amount to at least 93% of regular levels. In the event that the net
compensation of such employees, inclusive of a short-time allowance, should
fall below 93% of this level, the company will compensate employees for the
difference.

"Safeguarding jobs - even in difficult times - by using a broad range of
flexibility instruments has always been one of our key strengths," said Harald
Krüger, Human Resources Director of BMW AG, on Tuesday in Munich. "Our wide
variety of work schedule models helps us to achieve that. In addition to these
measures we are also using a sophisticated combination of flex-time accounts,
proactive leave planning and temporary short-time working at specific plants. I
am confident we will emerge from the current difficult situation stronger than
before - not least as a result of these measures. The highly-qualified
employees we are able to retain today will give us a decisive competitive edge
in the future."

Manfred Schoch, Chairman of the General Works Council of the BMW Group:
"Particularly in the difficult times we are currently experiencing, the
agreement we have reached represents a good compromise, achieved through
constructive cooperation between management and employee representatives. It
allows the necessary volume adjustments to be made, while securing jobs for
employees."

If you have any queries, please contact:

Corporate and Governmental Affairs

Michael Rebstock, Business Communications
Telephone: +49 89 382-20470 , Fax: +49 89 382-24418

Marc Hassinger, Business and Financial Communications
Telefon: +49 89 382-23362, Fax: +49 89 382-24418

Media website: www.press.bmwgroup.com
E-Mail: presse@bmw.de