After one of the worst recessions in decades, the automotive industry in particular has become a very different place. No automaker wants to risk overextending itself, which is why BMW, the world’s largest premium automaker, is teaming up with rival Mercedes-Benz in order to cut spending by $5.2 billion by 2012.
According to Bloomberg, this new partnership with Mercedes-Benz should be able to deliver a number of projects that should help cut spending on components and suppliers.
“We can say that from today’s perspective we will certainly and easily reach the 4 billion-euro savings goal, and even significantly surpass it,” said Herbert Diess, the BMW management board member responsible for the cuts.
While BMW is looking to save money, they’re not looking to impair their suppliers. Instead, BMW is eager to help suppliers improve efficiency as well, and help them develop the in-demand technologies and components that BMW and other automakers demand, such as new start-stop systems.
Not only will this new and rather unusual partnership help both brands trim costs over the next few years, but according to BMW’s Diess, it should also help to advance the development of the technology they both need.
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