Corona and the effects: BMW has to tighten its belt - and demands money from suppliers

The financial situation at BMW is not in good shape due to the Corona crisis.

A new measure by the automaker is likely to annoy some suppliers.

• Corona is also

  leaving its mark on Germany's auto industry - the consequences are not yet in sight.

• According to its own admission,

  BMW *

  cannot cope with the effects on its own - and appeals to

  suppliers

  .

• The automaker wants to get suppliers to

  lower

  prices, but with one important caveat.

Munich -

and the

pose unexpected challenges for the global economy.

Due to the viral disease, which has been rampant for months, BMW expects massive losses in sales.

A new measure is intended to curb this development and bring about cost savings.

However, this news will cause displeasure among some business partners:

BMW wants to save costs because of Corona - and demands price discounts from suppliers

The car manufacturer, which has recorded a massive loss in sales since the beginning of the Corona crisis, would like to tighten its belts with suppliers and subsequently implement

.

As the

first

reported, certain BMW suppliers are to lower their prices for current orders at the turn of the year, according to the report by a level of five percent.

A spokeswoman for the traditional Munich company later confirmed the plan and said on Thursday that the group could

not cope with

the financial

own.

However, the measure does not affect all companies in the supply chain: "In addition to suppliers who need help, there are many companies that are economically strong and can get through the crisis well." And it is precisely these companies that the call to reduce costs is aimed at.

It is "appropriate that suppliers who, in our opinion, are able to make a contribution," said BMW.

On the other hand, however, the car manufacturer from Munich would support those “suppliers who got into difficulties due to the pandemic in individual cases”.

In the past few months, there has been continuous bad news from the auto industry as Germany's key sector.

Various suppliers have problems, and there is also a threat of massive upheavals at VW.

BMW calls for cost reductions from suppliers and "expects price adjustments"

BMW itself does not demand

from its suppliers

.

Instead, the “expectation of price adjustments” is based on the fact that specific existing potentials - “on the cost side, among other things”, are to be implemented, as the group further announced.

Meanwhile,

has

inaugurated

its new centerpiece of the global

in the north of Munich *

:

In addition, BMW is making the main plant in Munich fit for the new i4 * - "Most extensive conversion in history".