Benz to Build Parts Supply Network in Mexico with BMW
Posted: 11/24/2014 03:11:27 Edited: 11/24/2014 04:11:02 Clicks: 7334
Executives of Mercedes-Benz, subordinate to Daimler - said recently that the company had expanded its cooperation with BMW and jointly built an auto part supply network in Mexico in order to enhance the respective localization ratio in the future.
Earlier this year, BMW and Daimler unveiled their plans for the establishment of factories in Mexico to take advantage of the country's growing industrial base as well as the free trade agreement for United States and other markets.
Klaus Zehender, a board member of purchasing and supplier quality responsible for Mercedes-Benz, disclosed, “The cooperation between us and BMW has lasted for eight years, and the cooperation state of both sides is positive. We are currently discussing how to operate our collaborating in Mexico and achieve 10% of cost savings in the local in the future.”
Klaus Zehender refused to release the potential scope and depth of cooperation with BMW, and only pointed out that Mexico was still lacking of part supply network for luxury cars. While building collaborative supply network with BMW is a part of strategy to enhance the localization ratio of overseas plants.
Last year, the new Mercedes-Benz C-Class cars were put into production respectively in China, South Africa and the United States. Mercedes-Benz plans to achieve 80% of the localization ratio in Mexico among the models that are possible to put operation there. The way to achieve this goal is to encourage the current supporting suppliers to set up factories overseas.
Earlier this year, BMW and Daimler unveiled their plans for the establishment of factories in Mexico to take advantage of the country's growing industrial base as well as the free trade agreement for United States and other markets.
Klaus Zehender, a board member of purchasing and supplier quality responsible for Mercedes-Benz, disclosed, “The cooperation between us and BMW has lasted for eight years, and the cooperation state of both sides is positive. We are currently discussing how to operate our collaborating in Mexico and achieve 10% of cost savings in the local in the future.”
Klaus Zehender refused to release the potential scope and depth of cooperation with BMW, and only pointed out that Mexico was still lacking of part supply network for luxury cars. While building collaborative supply network with BMW is a part of strategy to enhance the localization ratio of overseas plants.
Last year, the new Mercedes-Benz C-Class cars were put into production respectively in China, South Africa and the United States. Mercedes-Benz plans to achieve 80% of the localization ratio in Mexico among the models that are possible to put operation there. The way to achieve this goal is to encourage the current supporting suppliers to set up factories overseas.
