Tuesday, December 18, 2007

BMW running at 100% capacity, suppliers up in arms

Everything at BMW is running full steam ahead. All 23 of their production facilities worldwide are running at 100% capacity. It's come to the point that BMW has actually criticized their suppliers for having a better bottom line than BMW. BMW currently is pushing a 10% profit margin.

In an effort to become more cost effective. BMW is now starting to produce components in house. Rather than rely on suppliers. Current facilities in Leipzig and Regensburg are undergoing expansion. An entirely new Leipzig stamping facility will be built in 2009.

The statements made by BMW's deputy chairman of the supervisory board, Manfred Scoch to the suppliers. Many are displeased with how BMW thinks they are treating them. All of this dissatisfaction has led the suppliers to feel that BMW has shifted its focus from quality and innovative technology to the bottom line.

Source: Automotive News