10 November 2008
BMW has established a sourcing office in Mexico in an effort to boost purchasing power in Latin America.
The automotive giant opened the office late last month in Mexico City, its headquarters in the country. Buyers at BMW will use it as a base to strengthen and increase agreements with spare parts suppliers both in Mexico and elsewhere in Latin America. The office has been set up as part of the firm's "number one" efficiency strategy, which aims to save ?4 billion (£3.1 billion) by 2012 on material, production and development costs (News, 19 June).
BMW already has 80 established partnerships with suppliers in the region but aims to increase this to more than 100. The office hopes to supply the company's manufacturing plants in Europe and the US with spare parts valued at over $900 million (£552 million) by the end of the year.
Gerd Dressler, director in Mexico for the BMW Group, said: "It is very important for BMW Group to have a quality, reliable spare parts supplier net and provide opportunities for regional companies to participate in manufacturing products."
He added the country has become a "considerably" important sourcing region for the company and suppliers have experienced strong demand for hi-tech products.