BMW becoming less favorable with suppliers

BMW becoming less favorable with suppliers
BMW has been a long time favorite of automotive suppliers but is now running into problems as it moves towards more cost-cutting methods of production.

“My impression is that BMW is now undertaking a shift from a company driven by technology to one driven solely by operating figures,” one supplier manager said.

As CEO Norbert Reithofer sets goal to raise BMW’s profit margin to between 8 to 10 percent by 2012, BMW will cut...
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Agent009Agent009 - 12/18/2007 11:36:14 AM
+1 Boost
I guess when you switch from providing the best component within reasonable pricing, to the Walmart philosophy of who can give me what, for the lowest price.

You tend to tee off a few people. This is part of being an "independent maker", it is not nearly as cost effective.


w209w114w209w114 - 12/18/2007 11:39:44 AM
+3 Boost
“My impression is that BMW is now undertaking a shift from a company driven by technology to one driven solely by operating figures,”

HOPEFULLY NOT!!!! If not we have another Toyota in our hands where all the company cares about is bureaucracy, cost cuts, profit, and the ultimate bottom line profit. BMW has always been a family owned company and it still is so I doubt it will be shifting towards this direction, I think that as long as its owned privately it will continue to focus more so on quality versus profit and quantity like others


Agent009Agent009 - 12/18/2007 12:09:01 PM
+4 Boost
I think it is a fact sadly. The independent nature of the company places them at a serious disadvantage when it comes to containment of development costs. When Audi ramps up and announces new 10 models, BMW has to do the same to keep up and the bottom line suffers because of higher development costs.

This is where parts sharing can really save money on the bottom line.


M35MTM35MT - 12/18/2007 6:06:15 PM
+4 Boost
Um, you mean, you will have another "GM" on your hands. That was their strategy in the 80's and what ulitmately lead to Toyota gaining so much ground.


S4cabriofoxoneS4cabriofoxone - 12/18/2007 6:43:10 PM
+3 Boost
And now Toyota has the same problem! They're focusing on sales, and it shows!


ICONICON - 12/18/2007 1:53:14 PM
+3 Boost
06GS- how many times are you going to throw out that canard about BMW's reliability. You have beat that baseless innuendo to death. Get a grip and get over it -


S4cabriofoxoneS4cabriofoxone - 12/18/2007 6:44:04 PM
+5 Boost
Your Lexus GS is less reliable than the Audi A6 and BMW 5 Series.

Obviously, your GS has been reliable, so it's fair to say that those cars are reliable too, no?


XYZZXYZZ - 12/20/2007 3:06:11 AM
0 Boost
s4: "Your Lexus GS is less reliable than the Audi A6 and BMW 5 Series."

NOT by a LONG SHOT! look at any CR "Frequency of repair" set of charts. six year old GSs are more trouble free than 3 yr old a6s or 5s.

AND, the GS problems are just with paint/trim, and body hardware. the others have problems from stereo systems all the up to and including engine problems.



1evlaudi1evlaudi - 12/18/2007 12:43:41 PM
0 Boost
LOL


M35MTM35MT - 12/18/2007 6:07:47 PM
-7 Boost
You are so ignorant it's pathetic. Maybe you should flush want you learned in your socialist thought seminars and take an economics class.

You're just stupid!


Need4SpeedNeed4Speed - 12/18/2007 6:25:24 PM
+5 Boost
That did a lot to discredit his argument.


0to600to60 - 12/18/2007 6:50:32 PM
+6 Boost
M35MT, how bout you calm the f#%! down!


theoptimisticpessimisttheoptimisticpessimist - 12/18/2007 8:00:18 PM
+7 Boost
Ah,M35MT

Hate break this to you, the Japanese government keeping the yen low is a socialist move. So your passing a economics class comes into question.


LavicLavic - 12/19/2007 12:14:01 PM
+1 Boost
If Midengine is just stating a fact, how does that require succesfully passing an economics class?




gsh23gsh23 - 12/18/2007 1:20:16 PM
+1 Boost
does this explain all the faulty fuel pumps, window motors, hvac systems, idrive, tire pressure sensors, radiators, check engine lights, other random lights, active steering malfunctions, vanos failures, and many more?

im crossing my fingers that if i order a 335i i wont get a parts bin junker (no pun intended).


XYZZXYZZ - 12/20/2007 3:15:46 AM
+1 Boost
bmw is rightfully respected for its engineering prowess.

and yes, the use of cheap parts WILL hurt its image and long term sales.

detroit got overhauled by the japanese in large part due to its sourcing habits: the contracts always went to the LOWEST BIDDERS. consequently, the cars ended up being assemblages of the CHEAPEST PARTS available.

this became obvious as the cars AGED much quicker than their asian competitors'.


BillBill - 12/18/2007 3:42:04 PM
+1 Boost
239 comments for sure on this one.


S4cabriofoxoneS4cabriofoxone - 12/18/2007 6:44:39 PM
+1 Boost
No, that would only be if this was about Lexus. You should know that!

This will get 50... tops.


cericceric - 12/19/2007 6:11:31 PM
+2 Boost
I have owned a BMW 540 for 9 years since new.
It has been "super reliable" except for about 20 non-maintenance related problems. Half of them were related to cooling system (which was entirely replaced over the years).
If BMW can improve reliability, its sales will rocket thru the roof. There are so many people who would love to own a BMW, but got turned off by its reliability. Apparently, vehicles with I6 engines are much more reliable than the ones with V8.


topneurotopneuro - 12/21/2007 9:32:04 AM
+1 Boost
Is now called the American peso señor.


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