Blog: Dave LeggettBMW and Mercedes coming together on parts procurment?

Dave Leggett | 22 October 2008

Things must be getting pretty serious when major rivals sit down to discuss combining forces in procurment. But there are signals coming out of Germany suggesting that BMW and Daimler are doing just that. The idea is that they max out on scale economies (and maybe screw suppliers' prices down) on universal/commodity parts that don't impact branding. Bigger volume equals lower unit cost. There's no official statement yet, so maybe an agreement has not yet been finalised. Some suppliers may well view this development with a little concern.


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