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      12-01-2014, 03:18 PM   #264
chris82
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Drives: 128i
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2009 BMW 128i  [9.80]
Quote:
Originally Posted by Iron Man View Post
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.

Thanks you Iron Man! This is the most logical explanation of why they are cheaper. It should be stickied at the beginning of the thread!
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