Supplier delays stall BMW production

30 May 2017

A supply shortage has stalled production at a number of BMW plants.

A lack of steering systems from supplier Bosch affected production in Germany, South Africa and China.

Bosch said the delay stemmed from delivery problems it was having with one of its own suppliers in Italy that provides the housing for the electric steering system.

BMW has not responded to requests for comment from SM.

Jochen Müller, a BMW spokesman, told the Financial Times production of the 1 and 2-Series had come to a standstill on Friday and Saturday and that the situation was unlikely to change this week, despite initial plans to restart production today.

Markus Duesmann, BMW board member overseeing purchasing, told the FT: “A missing part, even if only a small one, as in this case, can have a major impact.” He added production of the 1, 2, 3, and 4-Series would be limited and that BMW expected compensation from Bosch for damages caused by the delay.

A spokeswoman for Bosch said: “In a task force, Bosch, its customer BMW, and the sub-supplier are doing all they can to resolve the delivery bottlenecks as quickly as possible and keep their impact to a minimum.” She added Bosch was already on site in Italy.

Bosch is one of the world’s largest automotive component suppliers.

This latest production delay for the automotive sector, caused by supply chain issues, is not an isolated case. Last year a dispute caused VW to put almost 28,000 employees across six factories onto reduced hours after a relatively small supplier halted deliveries of seat covers and gearbox components. VW announced afterwards that it was reviewing its procurement strategy.

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