BMW Costs Cuts Blamed for Parts Shortage image

According to Automobilwoche cost cuts at BMW have resulted in a shortage of spare parts at dealerships, longer delivery times and frustrated customers.

It’s been a month since BMW dealers have been dealing with disrupted component supplies, which was caused by a switch at the German car maker’s central logistics system, according to a report published by the Automobilwoche magazine.

“1,200 cars are grounded at dealerships and cannot be repaired,” Automobilwoche quoted works council chief Manfred Schoch as saying, blaming the carmaker’s management. “We’re having a massive loss in sales and profit contribution.”

BMW, the largest luxury automaker in the world, has begun to offer customers replacement vehicles as a solution to shorten waiting periods. A BMW spokesman confirmed the backlog, also saying that the situation is improving. He added that currently less than 5% of all part supplies to BMW dealers are still delayed.

According to the Federal Motor Transport Authority new vehicle registrations in Germany dropped 4.7% in June, to 300,000 units. During the first six months of the year sales fell 8.1% to 1.5 million units compared with the same period last year. Analysts predict that Germany will see a turnaround in its auto industry in the following months.

Source: Reuters