BMW to cut staff bonuses in savings push for electric vehicle drive

The company is introducing a pension component based on dividend payments.

BMW AG will reduce bonus payments for employees in Germany as the luxury-car maker grapples with the costly shift to electric and self-driving vehicles.

While BMW’s efforts lack the bite of drastic cutbacks outlined by rival Audi, they reflect the growing pressure facing Germany’s horsepower-focused brands to adapt to a new automotive era.

BMW and its employees agreed on a new formula to calculate bonus payments, BMW’s new Chief Executive Officer Oliver Zipse told workers at a staff meeting in Munich on Wednesday. If applied to last year’s payouts, they would have been nearly 20% lower. The company is also introducing a