BMW and Daimler set collaborative buying goal

29 July 2009

30 July 2009 | Jake Kanter

BMW and Daimler aim to extend their collaborative procurement agreement having identified more car parts they could source together.

The two automotive giants already purchase a number of car parts together, but now believe they could purchase together 10 per cent of the total components both firms need, without infringing on the different designs of their vehicles.

A BMW spokesman told the companies have opened negotiations with suppliers on the matter and the parts they are looking to purchase include electronics.

"There is a common interest among German automakers and suppliers - we are on the way and hoping for huge advantages. Suppliers welcome standardisation as well, because [higher] volumes are more attractive," he said.

Last month parts suppliers voted BMW the most innovative manufacturer in an industry survey. The German carmaker topped a list of 11 companies, scoring highest for supplier relationship management, openness to new ideas and willingness to share financial rewards (Web news, 24 June).

Meanwhile, a study by the US Original Equipment Suppliers Association this month found 57 per cent of 119 vendors had a "somewhat more optimistic" outlook for the next 12 months than they did in May. It follows the emergence of Detroit carmakers General Motors and Chrysler from Chapter 11 bankruptcy protection.


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