BMW is preparing to change the way it buys parts, with the company planning to rely much more heavily on standardised components across its model range.
By 2032, standardised parts are expected to make up the largest share of BMW’s roughly €80 billion annual purchasing budget. At the same time, the company plans to halve its use of bespoke components developed specifically for individual models.
The idea is that, instead of asking suppliers to develop unique parts exclusively for BMW, the auto giant wants to use more components built to common industry standards and supplied to multiple car manufacturers.
That could bring significant savings. Suppliers can produce larger volumes when the same component is sold to several automakers, reducing the cost of each part. BMW also saves the engineering time and resources required to develop everything from scratch.
BMW insists standardised components will not compromise quality, performance or the brand’s identity.
Source: Automotive News
