BMW Group has 54 suppliers in Hungary

The BMW Group has been in contact with over 200 suppliers in Hungary and currently, it purchases different components directly from 54 active partners in the value of about EUR one billion. These companies employ in Hungary a total of approximately ten thousand people.

Following a rigorous supplier audit, the world's leading premium carmaker recognized as potential partners 42 more firms that could count on order from BMW in the future, based the manufacturing needs. The BMW Group’s suppliers in Hungary include multinational companies with Hungarian production sites (e.g. Bosch, ZF Steering Systems, Alpine) or businesses owned by Hungarians completely (Csaba Metál, Fémalk).

In the region, Hungary is clearly the most important source of supply for the BMW Group: the Bavarian concern spends nearly a third of its Central and Eastern European purchasing budget at Hungarian companies. The large presence of the region (and Hungary within) in the procurement system is due – apart from the relatively low wages and high-quality, skilled workforce – to proximity to the German factories: for the BMW group, environmental awareness is a top priority, and it does not only appear in cars with low emission values  and production technology, but also in the short transport distances of the supply chain.

Suppliers from Hungary deliver to the BMW Group manufacturing plants, for example, castings, instrument panel assemblies, mirrors, locks and wipers, which are used in the BMW, MINI and Rolls- Royce models. As an example, the gearbox cases produced by Csaba Metál in Békéscsaba, SE Hungary, are built into the BMW i3 electric model manufactured in Leipzig, NE Germany.

BMW Hungary Managing Director, Baudouin Denis is of the view that although, the selection and auditing procedure is very lengthy and detailed, the accepted partners may get a supplier status for a minimum of seven years as, in general, this is the life-cycle of a model at the BMW Group. The partner company is invited to manufacture parts for used automobiles for a further period of 15 years.