BMW announced today that it is on track to save about $5.2 billion by 2012, by spending less on components and through a strategic partnership with Mercedes-Benz. A report by Bloomberg said that BMW will surpass its goal of cutting $5.2 billion.
“We can say that from today’s perspective we will certainly and easily reach the 4 billion-euro savings goal, and even significantly surpass it,” said Herbert Diess, a board member responsible for overseeing the cost-cutting. BMW is already beating earnings forecasts, posting a $417 million net income for the first quarter of 2010. Analysts expected the number to be $340 million. Diess credited the partnership with Mercedes-Benz for an expected savings of $129 million per year.
[Source: Left Lane News]