BMW cuts 10,000 contract workers; autonomy alliance with Mercedes is on hold

BMW will not extend the contracts of 10,000 contract workers, a company source told Reuters on Friday, as the German luxury carmaker seeks to reduce its capacity due to the coronavirus crisis.

The Munich-based company said earlier on Friday it had reached an agreement with the works council on a package of “personnel measures for a sustainable future.”

Daimler, meanwhile, on Friday said it had put on hold a development alliance in the area of automated driving between its luxury brand Mercedes-Benz and rival BMW.

“Following extensive review, the two companies have arrived at a mutual and amicable agreement to concentrate on their existing development paths, which may also include working with new partners,” Daimler said in a statement.

Daimler said the cooperation, which was announced in 2019, may resume at a later date.

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