BMW Ready To Cut Costs By USD 1.14 Billion

BMW Group wants to cut 1 billion euros (USD1.14 billion) in indirect procurement costs by 2019, the automaker’s head of production, Markus Duesmann, told a German daily newspaper. 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 was also quoted in the Handelsblatt report as saying BMW is seeking damages from supplier Robert Bosch after a shortage of steering components slowed production worth a “mid two-digit million-euro sum,” affecting delivery of about 8,000 cars.

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