BMW GROUP SPECIFIES CHANGES TO PERSONNEL STRUCTURES IN THE COURSE OF IMPLEMENTATING 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