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Supplying BMW

  • July 2013
  • -
  • Supplier Business
  • -
  • 103 pages

It is not simple good fortune that has seen BMW rise to become the current number one global premium vehicle manufacturer. Starting with inspired design and impeccable build quality, the OEM has gone on to introduce a series of innovative technologies that have served to develop an enviable market reputation around the world.

In order to meet increasing customer demand in various key markets, the OEM has invested in a series of local production plants. These combine both the latest production expertise from Germany with local market features to deliver a product that is both intrinsically solid while also incorporating a range of surprise-and-delight elements that appeal to local customers.

To source these innovations, BMW has relied on its own in-house technology development, but a far greater percentage of individual items are developed and delivered by tier suppliers, many of which have been working with the company since its inception. Yet there are still opportunities for companies with new ideas to work with BMW, as the OEM is actively searching for improved versions of existing technologies and wholly new ideas that will continue to give the OEM its market edge as it continues with its Strategy Number ONE, a programme designed to maintain BMW’s leading market position through 2020.

A round up of the model range, platforms and manufacturing plants at BMW is featured in Supplying BMW, but also an in-depth review of what the OEM is looking for in terms of a supplying company, the process by which the relationship is developed and maintained, and how suppliers looking to contact BMW can get involved with the OEM. Additionally, there is information from BMW and also a review of how series turbo developer and manufacturer BorgWarner, winner of a 2013 BMW Supplier Innovation Award, works with BMW.

Table Of Contents

Supplying BMW
• Global market overview
• Financial data
• BMW Group financial overview

Product and platform strategy
• Strategy review
• Major model programmes
• Platform strategy
• Major platforms
L7 (3-Series, X3, 4-Series, 1-Series, 2-Series)
L6 (5-Series, 7-Series, 6-Series, Rolls-Royce Ghost and Wraith)
L2 (X1, Z4)
L3 (Mini Hatchback, Cooper, Clubman, Coupe, Roadster, Countryman, Paceman)
L4 (X5, X6)
Component sharing
Volume planning

Production strategy
• Production strategy overview
• Manufacturing network
United States
United Kingdom, The Netherlands, Austria
South Africa
CKD Build Locations
Internal supply network
Modularisation strategy
Supplier parks
Cluster of reference
Strategies for manufacturing efficiency

Purchasing strategy
• Purchasing strategy overview
• Levels of vertical integration and outsourcing
Purchasing organisation
Purchasing offices
Key purchasing personnel
• Purchasing budget

Supplier selection
• Supply base development
• Major and strategic suppliers
• Supplier selection criteria
• Working with the BMW Group

Global sourcing
• Policy and plans
United States

Pricing policy
• Cost reduction programmes and strategies
• Payment terms
Raw material price management

Quality management
• Quality level
Quality management systems
Integration into product development
Management of sub-suppliers
• Supplier awards
Efficient Dynamics
Lightweight Construction
Connected Drive
New Technology Experience
Special “Innovation Partnership Award”

• Technological positioning
Areas of focus
• RandD spending
RandD organisation
Access to supplier technology
Approach to alternative fuels, electrification and fuel cells
• Special vehicle development

• Frank Weinstroth, BMW spokesperson for Suppliers, Logistics and IT
• Mart Verschoor, vice-president of engineering at BorgWarner

OEM-Supplier survey results
• Introduction to the SuRe Index
• Executive summary
• Profit potential
• Organization
• Trust
• Pursuit of excellence
• Outlook

Global footprint

Forward Model Programmes

Major suppliers

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