BMW is planning to slash EUR100m (US$136m) of German labour costs annually from 2015 onwards, according to the Muenchner Merkur newspaper.

Workers’ representatives told the newspaper savings would be a result of the company considering which plants in Bavaria would be economically attractive enough to build new BMW models in the future.

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The carmaker is spending several million euros on investment and new models to stay ahead of Audi and Mercedes-Benz, and is seeking record sales this year.

In March, BMW announced it would spend US$1bn to expand its US plant in Spartanburg, South Carolina, increasing the number of workers by about 800 to 8,800, making it the group’s biggest production facility by 2016.

BMW would not comment on the latest reports but said there were ongoing talks with the workers’ council about where to build new models and that management would assess the competitiveness and costs of different sites.

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