More BMW Execs Expected To Resign
Dec. 06, 1998
MUNICH, Germany (AP) _ BMW expects three more top managers to resign over the crisis in Rover Group, which could post losses this year of $650 million, a German news magazine reported.
The Die Spiegel report, issued Saturday just days after the resignation of Rover Group chairman Walter Hasselkus, said Rover executives in charge of quality and finance were to leave their posts as well as a Bayerische Motoren Werke AG executive.
The report, based on an interview with BMW chief Bernd Pischetsrieder, did not identify the executives.
Hasselkus announced his resignation Wednesday, a week after the company and leaders of its unions reached agreement on a plan to trim 2,500 jobs from the current work force of 39,000. BMW hopes to save $250 million per year due to the job cuts and the introduction of new working practices.
In addition to high losses in Rover Group, BMW expects to lose $179 million this year in its subsidiary Rolls Royce. The BMW brand, however, expects record profits this year of $1.9 billion, according to the report.