BMW Customers Left Waiting For Repairs As New Supply-Management System Causes Delays
News: Germany-based auto company BMW has admitted it is struggling to deliver spare parts on time as its new supply-management system forces customers to wait for repairs, reports Auto News. The company's spokesman, Manfred Grunert said around 10% of auto parts are not immediately available in the central warehouse in Dingolfing, Germany, due to the changeover. BMW said it is aiming for the new system to begin working properly by early-September 2013 and confirmed its workers are on extra shifts to help shorten the delays.
BMI View: In the first four months of 2013, passenger car sales in Germany declined 8.5% y-o-y, to 958,500 units. BMI forecasts a decrease of 10.0% in passenger car sales over the year. We maintain a bearish outlook for consumer sentiment in the country. Indeed, BMI expects ongoing deterioration in the German labour market, combined with weakness in the euro, to cause private consumption in the country to remain subdued in 2013. We believe that this will serve to moderate passenger car sales growth somewhat, and has informed our sales forecast.