BMW to cut 1 billion euros in indirect expenses

BMW plans to slash 1 billion euros ($1.14 billion) in indirect procurement expenses by 2019, BMW head of production Markus Duesmann informed the Handelsblatt daily.

A BMW representative confirmed the figure.

The German automaker’s indirect procurement costs total up to about 20 billion euros yearly, however BMW needs to make savings so the company can invest more in developing electric and self-driving vehicles.

Duesmann likewise stated BMW is seeking damages from vehicle parts provider Bosch after a shortage of steering parts slowed production worth a “mid two-digit million euro sum”, impacting delivery of an estimated of 8,000 vehicles.