BMW: Jobs, Volume Cuts coming

16 years straight of increases in sales normally doesn't precipitate a change in which job cuts and volume decreases are something that are even considered.

Normally.

But we're talking that in a time of what is perhaps the biggest swoon in the automotive industry historically, even if you are a company that is doing or has done decently well, you've got to be in full protect mode. So when BMW North American Chief Jim O'Donnell announced that these cuts were coming, it was a bit of a surprise, but really only a mild one. Here are the points:

-- Cut lease volume at least 10 percentage points.

-- Reduce incentive spending and end the traditional December blowout.

-- Change dealer bonuses to boost customer satisfaction.

-- Cut corporate costs. O'Donnell says he will eliminate 90 North American jobs.

Not exactly mind blowing, but just another sign of the times, it seems. The United States economy/dollar and anticipated continued dips in the U.S. market led O'Donnell to cut his U.S. allocation of vehicles. BMW even slashed the U.S. allocation of the X3 small crossover by several thousand vehicles, even though it's in demand because of high fuel prices..

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