BMW will save US$126 million yearly in Daimler purchasing deal

BMW has been rivals with Daimler in the automotive industry. But with the effort to reduce production costs and increase profit to compensate for what was lost in the past years, there have been on going talks between BMW and Daimler on how they can build operational alliances. This will allow both companies to to gain synergies without tying up any capital in equity.

BMW and Daimler had already brought large scale bulk components and got better prices. Because of the current cooperation between these two companies, BMW is expected to save approximately US$126 million every year.  BMW’s procurement chief had already confirmed these figures. With both parties satisfied with the foreseen results, the cooperation will continue to grow in the following years.

BMW is also in talks with French PSA/Peugeot-Citroen SA for purchasing tie-ups, but no decision has been finalized yet.  Peugeot-Citroen SA already supplies diesel engines for Mini.