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BMW Blames Bosch For Production Stoppage

By Edge Ison , May 30, 2017 07:32 AM EDT
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BMW is pointing an accusing finger at Bosch as the reason why the car company had to cease production of some of its models. BMW insists that its partner company has failed to produce vital car components for it to continue production. As a result, BMW is seeking compensation.

According to Bloomberg, BMW failed to push through with the production of the popular 3-Series sedan as well as other models due to the absence of steering gears. Bosch was supposed to provide BMW with the said component but was not able to do so because of another company working with the world's largest supplier of car parts.

BMW released an official statement explaining the reason why it had to stop production of the BMW 1 Series, 2 Series, 3 Series and 4 Series. The statement also mentioned that the company is "taking advantage of the flexibility of [its] processes to minimize economic damage." As Reuters noted, BMW is also expecting Robert Bosch, which it described as a "responsible supplier", to compensate for damages.

According to BMW's chief of purchasing Markus Duesmann, the inability of Bosch to provide the steering gears forced the company to limit production in its German plants. Production schedules in the company's Chinese and South African factories have also been drastically adjusted or completely stopped until further notice.

Bosch, as mentioned, is passing the blame on a company. Bosch explained that the company procures the housing or casing for the electronic steering system from an Italian sub-supplier. According to reports, there is an ongoing bottleneck at the said sub-supplier. Bosch stressed that it has already sent its people to see what can be done at the Italian company to deal with the issue. Bosch is also extending its hand to BMW to find a suitable solution to the problem.

Despite a halt in production, the company launched the 2017 BMW 4 Series last March. Its success, however, will depend on whether the three companies work things out and make the car available to prospective buyers.

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