BMW to Resume Production After Assurances From Supplier Bosch

By William Boston Features Dow Jones Newswires

BERLIN - BMW AG said Wednesday it would begin resuming stalled production at plants around the world after supplier Bosch GmbH assured the German luxury car maker that it would resume delivery of electronic steering components.

Continue Reading Below

"In the coming weeks we will try as far as possible to make up for the production delays caused by Bosch's delivery shortfalls," Markus Duesmann, BMW board member in charge of purchasing and supply, said in a statement.

Bosch was unable to deliver steering gears to BMW as a result of problems at one of its suppliers in Italy, that supplies Bosch with metal casings for the parts. That forced BMW to temporarily close or curtail production of 1-Series through 4-Series vehicles at plants in Germany, China and South Africa.

Bosch confirmed in a separate statement that it was resuming production of the parts and that its "highest priority" was to secure deliveries and supply the missing parts in the next few days.

The interruption of BMW's factories showed how even small disruptions anywhere along the line can cascade into delays in getting the company's big money-making products off the assembly line and into showrooms.

As a result of the shortages, BMW restricted production at several plants in Germany, the Tiexi plant in Shenyang, China, and at the company's plant in Rosslyn, South Africa, a BMW spokesman said.

Continue Reading Below

Write to William Boston at William.Boston@wsj.com

(END) Dow Jones Newswires

May 31, 2017 11:06 ET (15:06 GMT)