BMW looking to cut 1 billion euros in indirect costs

German carmaker BMW (BMWG.DE) wants to cut 1 billion euros ($1.14 billion) in indirect procurement costs by 2019, BMW head of production Markus Duesmann told the Handelsblatt daily. A BMW spokesman confirmed the figure.

BMW’s indirect procurement costs amount to about 20 billion euros a year, but BMW needs to make savings so the company can invest more in developing electric and self-driving cars.

Duesmann also said BMW is seeking damages from automotive parts supplier Bosch after a shortage of steering components slowed production worth a “mid two-digit million euro sum”, affecting delivery of around 8,000 cars.

Source: Reuters