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BMW hit by shortage of parts, cuts blamed

Global Times (2013-07-08 P29)
By Reuters
Cost cuts at Germany's BMW have led to a shortage of spare parts at dealers, prolonging delivery times and frustrating customers, Automobilwoche reported Sunday, citing the luxury carmaker's top labor representative.

BMW dealers have been grappling with disrupted component supplies for about a month, caused by a switch at the automaker's central logistics system, the magazine reported, quoting works council chief Manfred Schoch.

"1,200 cars are grounded at dealerships and cannot be repaired," Automobilwoche quoted Schoch as saying, blaming the carmaker's management. "We're having a massive loss in sales and profit contribution."

The world's largest luxury-vehicle manufacturer has started to provide customers with replacement cars to help shorten waiting periods, the magazine said.

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