We are very much aware that American automakers are reeling as if they have just been hit by a right cross by Kimbo Slice. General Motors, Ford, and Chrysler have been reducing their workforce for months now and have shut down plants and reduced shifts on some of their assembly facilities.
On the other hand, we are under the impression that European automakers are sailing smoothly with a few setbacks here and there. But recently, Edmunds reported that BMW, yup, the same German automaker which manufactures vehicles with auto parts as reliable as Acura alternators, has announced that they are looking to cut about $8.7 billion in cost by 2012.
That announcement is really similar to when the Big Three announced that they are cutting down costs. The German automaker will also take steps similar to what the Big Three has done. BMW will be trimming their workforce and will reduce their spending on materials and research and development.
Now, this is really bad. Bad in the sense that there will be a lot of people forced out of their jobs and that has never been good. Another thing I am worried about is that the quality of vehicles that the German automaker manufactures may decline. Sure, the automaker has been creating wonderful machines for as long as we can remember, but they were able to do that because of their prowess in R&D.
Any company which focuses on R&D can easily develop products which will attract consumers. So, if BMW starts slashing down budget, there is a chance, albeit a small one, that the quality of their future vehicles may suffer. But then again, BMW surely knows what its doing.
