BMW looking to cut 1 billion euros in indirect costs

A BMW logo is seen on a car during the 87th International Motor Show at Palexpo in Geneva, Switzerland, March 7, 2017. REUTERS/Denis Balibouse

BERLIN (Reuters) - German carmaker BMW BMWG.DE wants to cut 1 billion euros ($1.14 billion) in indirect procurement costs by 2019, BMW head of production Markus Duesmann told the Handelsblatt daily.

A BMW spokesman confirmed the figure.

BMW’s indirect procurement costs amount to about 20 billion euros a year, but BMW needs to make savings so the company can invest more in developing electric and self-driving cars.

Duesmann also said BMW is seeking damages from automotive parts supplier Bosch after a shortage of steering components slowed production worth a “mid two-digit million euro sum”, affecting delivery of around 8,000 cars.

($1 = 0.8757 euros)

Reporting by Edward Taylor; Editing by Maria Sheahan and David Evans