Cars
BMW Aims to Cut Parts Costs by $2.4 Billion in E-Car Shift
- German automaker seeks to trim component spending by 5%
- Suppliers to face more competition amid savings squeeze
BMW's Robertson Says Electric Cars Are Long-Term Trend
BMW AG aims to cut roughly 2 billion euros ($2.4 billion) from its annual purchasing bill by squeezing spending on auto components to help finance the shift to electric cars.
Amid plans to roll out at least 12 electric cars by 2025, Munich-based BMW is seeking to trim about 5 percent from costs for car parts alone, which currently totals about 40 billion euros yearly, Markus Duesmann, head of purchasing, said late Wednesday in an interview. That compares with a cumulative 4 billion-euro reduction that competitor Daimler AG is seeking in fixed costs, research and development spending and capital expenditures.