BMW has been forced to cut production of its large displacement engines in the wake of sluggish world demand. Despite the luxury segment usually remaining fairly resilient to environmental concerns and rising fuel costs, BMW hasn't produced its V8 engines at full capacity for the past year and demand is expected to fall further.

The same story can be told for its high-performance V10 and V12 engines, according to the carmaker’s union boss Manfred Schoch. Speaking with Automotive News, Schoch explained that current world demand for BMW’s V8 engines could be produced with a one-shift operation running just four days a week.

On the other hand, the carmaker is struggling to meet demand for its four-cylinder engines and is even considering phasing out production of its six-cylinder engines at its main Munich plant as well. This would allow BMW to build up to 500,000 four-cylinder engines a year, Schoch explained.

Shoch also called for the company to develop an all-electric vehicle, an option that BMW is currently exploring under its 'Project i' umbrella. The first Project i model is expected to be a small city car designed for just two people, which you can see a preview of by clicking here.