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BMW looking to cut 1 billion euros in indirect costs

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Reuters BERLIN
Last Updated : Jul 07 2017 | 12:42 AM IST

BERLIN (Reuters) - German carmaker BMW 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)

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First Published: Jul 07 2017 | 12:27 AM IST

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