It sure is a ‘believe it or not’ kind of a story. The luxury car maker BMW is being helped by its arch rival Mercedes-Benz in cutting down on expenditure on components and supplies and its going to surpass its target by a whooping 4 billion euros or $5.2 billion by 2012.
It has been several months now since both Mercedes-Benz and BMW has resorted to the use of a series of cost cutting measures that they believe will help them save about 100 million euros every year by 2012. BMW’s purchasing chief Herbert Diess added, “We can say that from today’s perspective we will certainly and easily reach the 4 billion-euro savings goal, and even significantly surpass it.” BMW is surely looking for ways to increase its profit margins after increased competition from its rivals Mercedes-Benz and Audi. Audi has already made its intentions clear that it is looking at occupying the top spot by 2015 by dethroning BMW. BMW, on its part, seems to have adopted a policy of proliferation of its product though what remains to be seen is whether they would be able to manage it all or will it turn out to be counterproductive for them.