BMW, the world’s largest luxury automaker, is own its way to significantly reduce spending on components and suppliers by 4 billion euros ($5.2 billion) by 2012. The cut in spending will come with some assistance from a partnership with Daimler AG’s Mercedes-Benz unit, BMW’s closest rival.
Herbert Diess told Bloomberg that talks between BMW and Mercedes-Benz have yielded new projects over the past several months that will help both companies cut spending by about 100 million euros a year by 2012.
BMW is looking to lower costs by helping component suppliers improve efficiency as well as develop systems, such as start/stop technology, that they may be able to sell to other manufacturers. “We”ll never be able to lower costs just through volumes,” Diess said.
He said that new projects with Mercedes-Benz “will lead to significant savings as well as technical advances.
– By: Omar Rana