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BMW shares trade lower in Frankfurt on Wednesday, auto maker plans significant production cost cuts by 2025

BMW intends to reduce production costs significantly by the middle of the decade, as it seeks to better compete with rivals such as Volkswagen, Daimler and Tesla.

“We will lower the production costs per vehicle by 25 percent by 2025 compared with the level in 2019,” Milan Nedeljkovic, BMW’s board member in charge of production, told German newspaper Handelsblatt.

Shares of Bayerische Motoren Werke AG (BMWG) were edging down 0.40% (EUR 0.375) in Frankfurt on Wednesday to trade at EUR 92.635.

In May, the auto maker said that it was still on track to meet its full-year profit targets, regardless of surging raw material costs. Yet, chip shortage worldwide is expected to deepen, BMW said, and could affect production during the second quarter.

According to Nedeljkovic, BMW strives to produce 3 million vehicles per year prior to 2030.

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