BMW will require suppliers to absorb more of the cost of raw material price rises in the future.
Purchasing chief Herber Diess told Automobilwoche that, since 2004, raw materials price rises have added an additional EUR800m in costs, of which EUR700m have landed on BMW's books. This has had a big impact on the company's financial results.
"We have partners that have managed to pass on to us 100% of raw material prices rises, and a few have even managed to pass on 110%," said Diess. In the future Diess said he wants price rise penalties to be shared three ways - between the second tier supplier, the first tier supplier and BMW.
just-auto.com
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