BMW and Daimler set to expand joint procurement

BMW has predicted an expanded car-part purchasing partnership with Daimler will help generate savings of around €100 million (£82 million) a year from 2012/2013. The pair has worked together for the past two years to negotiate better prices and currently purchase more than 10 components together.

BMW procurement chief Herbert Diess reportedly told Reuters about the expansion plans, adding: “We are satisfied with the co-operation. That will pay off over the years.” A spokesman for the automotive giant confirmed it was looking to expand the number of vehicle parts it currently buys jointly with Daimler. They would not, however, specify the nature of the components or provide details on the expansion of the collaboration.

In July 2009, Supply Management reported that BMW and Daimler aimed to extend their collaborative procurement agreement having identified more car parts they could source together.

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