BMW, Daimler to Share Suppliers in Mexico

BMW AG and Daimler AG are cooperating with each other to build a local supply base for their new factories in Mexico.

Klaus Zehender, who head procurement and supplier quality for Daimler's Mercedes-Benz Cars unit, tells Reuters the two companies have been coordinated on suppliers in other regions for eight years. He says doing so in Mexico could reduce procurement costs there by about 10%.

Zehender doesn't explain which components the companies plan to coordinate. But he does say Mexico currently lacks a supply base suitable for luxury vehicles, according to Reuters.