BMW has denied claims by a German newspaper that it is struggling to lay off as many workers as it wants to as part of its cost-cutting programme.

Handelsblatt reported that only a few hundred full-time workers have signed termination agreements. BMW is aiming for over 2,500 full-time Germany workers to take voluntary redundancy. A wage agreement bans compulsory redundancies until 2013.

According to Automobilwoche, however, BMW says it has laid off more than 1,000 workers, and that this is in line with targets.

BMW is aiming to save six billion euros in costs by 2012. The newspaper also reported that BMW is struggling to meet cost-cutting targets because of rising raw material costs and oil prices.