BMW has announced that it has reached an agreement with its workforce on measures to reduce costs and avoid 'drastic measures'.

"We have achieved a solution based on solidarity. This allows us to avoid drastic measures that others are currently taking to reduce their costs," BMW Group chief executive Oliver Zipse said in a statement.

The agreement involves reducing bonuses for workers based on company profits, as well changes to Christmas and other bonuses for some workers, effective next year.

BMW - like others in the auto industry (Audi has just announced job cuts) - is grappling with higher manufacturing costs as it prepares to build hybrid and electric cars, as well as invest in costly advanced technologies such as autonomous drive. That puts the focus on achieving cost cuts elsewhere.

BMW is aiming to achieve at least EUR12bn in efficiency gains by the end of 2022. It is also planning to cut product development times and rationalise powertrain offerings.

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