July 6, 2017 / 6:58 PM / 19 days ago

BMW looking to cut 1 billion euros in indirect costs

1 Min Read

FILE PHOTO: A BMW employee works to install the kidney grill on an X4 along the production line at the BMW manufacturing plant in Spartanburg, South Carolina March 28, 2014.Chris Keane/File Photo

BERLIN (Reuters) - German carmaker BMW (BMWG.DE) wants to cut 1 billion euros ($1.14 billion) in indirect procurement costs by 2019, BMW head of production Markus Duesmann told the Handelsblatt daily.

A BMW spokesman confirmed the figure.

BMW's indirect procurement costs amount to about 20 billion euros a year, but BMW needs to make savings so the company can invest more in developing electric and self-driving cars.

Duesmann also said BMW is seeking damages from automotive parts supplier Bosch [ROBG.UL] after a shortage of steering components slowed production worth a "mid two-digit million euro sum", affecting delivery of around 8,000 cars.

($1 = 0.8757 euros)

Reporting by Edward Taylor; Editing by Maria Sheahan and David Evans

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below