BMW is putting pressure on its suppliers to reduce costs as part of its own cost-saving programme.
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According to Germany’s Manager magazine, BMW is asking for price cuts of 15 to 20%. Suppliers said that BMW sent out letters demanding the cuts in December.
In addition BMW wants to cut its contributions to suppliers’ rising commodity costs.
Meanwhile, BMW CEO, Norbert Reithofer has said that the automaker expects to spend more on R&D over the next five years. He said that rising oil prices and tougher emissions requirements meant that the company must work hard on improving fuel economy, spending around 5.5% of turnover on R&D.
Although the company is under pressure, Reithofer said he expects the company to make a good profit of over EUR3.75bn before tax this year.
