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BMW reviews supplier chain due to IG Metall strikes

Frankfurt/Main. The works council leaders of all automotive manufacturers in Germany met on June 23 with the IG Metall's leadership to discuss the strikes in eastern Germany's metal and electronics industries. The works council members fear that the fight for the 35-hour week will lead to further production losses and short time work in automotive plants in western Germany. VW announced June 20 that it will have to stop Lupo and Golf production in Wolfsburg if the strikes continue.

As a result of supply bottlenecks caused by the strikes, BMW has stopped production of the 3-series, which B&D Forecast estimates is causing daily turnover losses of approximately 38 million euros.

Now the manufacturer is looking for strategies to protect itself from the effects of strikes outside Bavaria. "The whole supplier chain will be examined," a BMW manager announced. It is being considered to obtain components from more than one supplier in future -- preferably from companies in the West. "IG Metall has opened Pandora's box," a BMW spokesman said. It is also being considered to reduce the number of suppliers in eastern Germany for the new plant in Leipzig. The Metal and Electronics Industry Association fears that hundreds of jobs will be lost in the former East Germany due to the strikes. Several foreign corporations have frozen their plans to invest in the region.

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