Quote:
Originally Posted by Iron Man
BMW probably has a contract for a set number of parts they will buy from TRW. Though the more parts TRW makes in a manufacturing run, the lower their overall cost to produce the part (which obviously exceeds the contract volume they sell to BMW), therefore they sell what BMW does not buy, since it is good for their profits and good for those who buy the exact same parts for less. They just have to grind off the M logo to not violate their BMW contract.
My experience with the automotive industry shows this is a very common practice and not to be equated with part manufacturers who outsource cheap production to China or Asia to make aftermarket parts and increase their margins.
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This is precisely my point the term factory seconds implies parts that are in some way damaged usually cosmetic and therefore cannot be sold as new.