"Sachs will have liability insurance"
Its not Sachs on this model but whoever made them must be in trouble.
The liability insurance is for injury claims etc and will not cover them for replacing faulty goods. So if we imagine 8000 faulty shocks at say £500 each = £4,000,000 to manufacture, probably now scrap and then replace them with shocks which may cost more to make and probably not get paid more for the company is set to loose £5,000,000. If BMW turn the screws and demands they compensate owners + loss of good faith, labour to fit etc the supplier must be finished off.
BMW would then have to find an alternative supplier, develop the product, test it, tool up and so on, this would take a long time, so perhaps BMW taking over the supplier may be the only option.
What will amount to more than 4 mil is the depreciation BMW will take on all the loaners out there for this year, which will be claimed on, loss of brand, reputational costs, loss of future sales on the RT etc. I m no actuary, but I reckon this is in the region of 8-12mil claim, certain to take Marzochi to town.







