The carmaker's stock was down 3 per cent at close of trading yesterday at €35.20 - one of the biggest fallers on the benchmark DAX index, which rose 1.2 per cent.

“We are doing our homework to ensure our business success in the future,” said BMW Group chairman Norbert Reithofer, who explained the company's cost-cutting plan to analysts and shareholders in London on Wednesday.

“The implementation of our new strategy is not a 100-yard dash. This year, we are laying the foundation for a turnaround in profitability.” At the same event, BMW's chief financial officer Michael Ganal said the company believed the targeted savings could be achieved in the area of material, production and development costs. “In concrete terms, we expect that in this area, we will be able to realise two-thirds, or €4bn, of the total potential, which amounts to some €6bn,” said Ganal. Other parts of BMW's strategy include personnel cost reduction and reduced dependence on foreign exchange rates – the company has said it plans to work on strategically increasing purchasing in US dollars.