Daimler and BMW collaborate to set up supplier network in Mexico

Article by Christian A., on November 21, 2014

German carmakers Daimler and BMW are working together to establish a network of suppliers for new plants in Mexico, according to Klaus Zehender, divisional board member for procurement and supplier quality at Daimler's Mercedes-Benz unit. The collaboration is part of Mercedes’ bid to further widen its network of local suppliers at its sites in China, South Africa, the United States and Mexico.

BMW and Daimler earlier this year each disclosed plans to make $1 billion in investments to build a site in Mexico, aiming to benefit from the country's budding industrial base as well as tariff-free access to the US. Zehender said that a cooperation between Daimler and BMW in Mexico could result to savings of around 10 percent.

He noted that the two carmakers work together where they have common interests, like setting up technical competencies among suppliers in specific plants.

He added that Mexico lacked an established network of suppliers for components suitable for premium vehicles. Zehender said collaborating with BMW to build a supplier network was part of a push to produce more components overseas where Mercedes already operates a site. Mercedes commenced output of the C-class limousine in China, South Africa and the US.

Zehender said that the carmaker has already made a move to source 60 percent of a vehicle's components from local suppliers.

He noted that as Mercedes builds more models in Mexico, the percentage of locally sourced components could surge to 80 percent. He said that to increase the proportion of components sourced locally, Mercedes encourage current suppliers to expand overseas. [source: Reuters.com]

Topics: daimler, bmw, mexico

If you liked the article, share on:

Comments

Recommended

A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries