RikfromBelgium
Das Beste Enthusiast
- Messages
- 1,761
djeezes, they're acting like a bunch of pre-adolescent 12yr olds, do it or don't do it. Kiss her or don't kiss her but cut the bullcrap
BMW in talks with Merc
- Thread starter far2000
- Start date
Next-gen Mini and Mercedes small cars to share common platform?
More confirmation arch rivals BMW and Mercedes-Benz could be planning a partnership is news that officials from Mercedes are considering using BMW’s next-gen Mini platform for the new A and B-class small cars due by 2011. Previous reports suggested Mercedes were planning to launch sportier variants of the B-class including a new roadster and hot-hatch, and developing these along with a new sporty Mini would help reduce costs and spread investment risk.
According to an inside source, the rival carmakers are in talks over a possible deal to share development of the new platform. The deal would also allow Mercedes to drop its expensive sandwich design as used on the current A-class, reports Automotive News. The source also revealed Mercedes would likely use its own powertrains although there have been rumors of an engine partnership as well.
The new B-class will be a crucial model in Mercedes’ lineup because the car will likely be sold in the U.S. for the first time, which would see the brand expand into a much lower price segment than usual.
More confirmation arch rivals BMW and Mercedes-Benz could be planning a partnership is news that officials from Mercedes are considering using BMW’s next-gen Mini platform for the new A and B-class small cars due by 2011. Previous reports suggested Mercedes were planning to launch sportier variants of the B-class including a new roadster and hot-hatch, and developing these along with a new sporty Mini would help reduce costs and spread investment risk.
According to an inside source, the rival carmakers are in talks over a possible deal to share development of the new platform. The deal would also allow Mercedes to drop its expensive sandwich design as used on the current A-class, reports Automotive News. The source also revealed Mercedes would likely use its own powertrains although there have been rumors of an engine partnership as well.
The new B-class will be a crucial model in Mercedes’ lineup because the car will likely be sold in the U.S. for the first time, which would see the brand expand into a much lower price segment than usual.
- Messages
- 41,225
- Name
- Marcus
Detroit News - Mercedes' next ally may be its old rival
It might seem premature to ask who Mercedes-Benz's next partner will be. Parent company DaimlerChrysler AG is still finalizing the separation from Chrysler LLC. On Thursday, its shareholders will gather in Berlin to vote on a new name for the German truck- and luxury carmaker: Daimler AG, removing the last outward trace of the nine-year merger.
So far, the split is doing wonders for soon-to-be-Daimler. The stock has rallied 50 percent since the firm's announcement in February that it would sell Chrysler. The Mercedes car division is out-earning Audi and BMW. On Monday, Moody's Investors Service raised DaimlerChrysler's debt to a coveted single-A grade.
Moody's Senior Vice President Falk Frey said the sale of 80.1 percent of Chrysler had strengthened Daimler's financial profile and reduced the risks it faced as the owner of the smallest of the mass-market U.S. automakers.
But some German investors already are looking ahead to the next partnership. If Mercedes-Benz looked too small nine years ago to be a viable global player, it looks even smaller now.
Ballooning costs
Mercedes' research and development costs are expected to rise steeply as the industry strives to meet ever more stringent environmental standards. Mercedes' enviable profits, amounting to 9.6 percent of sales in the second quarter, are due in part to reductions in R&D and capital expenditure to around 7.5 percent of sales, said Merrill Lynch analyst Harald Hendrikse. Historically, its R&D and capital spending ranged between 10 percent and 11 percent of sales.
This time around, investors expect Daimler to look closer to home, to its Bavarian rival BMW, not for a full-blown merger mate but for a partner to generate economies of scale and share some costs.
Logical partners
The two carmakers already are working together to develop hybrid powertrains in a project with General Motors Corp.
"They are logical partners -- they're close in size and technological ability," says analyst Jürgen Pieper at Metzler Bank in Frankfurt.
The two also are increasingly threatened by the powerful grouping formed by Porsche's creeping takeover of Volkswagen AG, and its portfolio of brands including Audi.
"There's huge momentum at Volkswagen, and they might use their size better now than they have in the past," he said.
BMW is under even more pressure than Mercedes after a three-year drop in its margins. Last week CEO Norbert Reithofer laid out plans to wring out $8 billion in savings by 2012, partly by cutting purchasing costs. For now, BMW isn't interested in acquiring any brands -- and Reithofer laid out strict criteria for any acquisitions. But he no longer ruled them out.
Mercedes' next ally may be its old rival
M
It might seem premature to ask who Mercedes-Benz's next partner will be. Parent company DaimlerChrysler AG is still finalizing the separation from Chrysler LLC. On Thursday, its shareholders will gather in Berlin to vote on a new name for the German truck- and luxury carmaker: Daimler AG, removing the last outward trace of the nine-year merger.
So far, the split is doing wonders for soon-to-be-Daimler. The stock has rallied 50 percent since the firm's announcement in February that it would sell Chrysler. The Mercedes car division is out-earning Audi and BMW. On Monday, Moody's Investors Service raised DaimlerChrysler's debt to a coveted single-A grade.
Moody's Senior Vice President Falk Frey said the sale of 80.1 percent of Chrysler had strengthened Daimler's financial profile and reduced the risks it faced as the owner of the smallest of the mass-market U.S. automakers.
But some German investors already are looking ahead to the next partnership. If Mercedes-Benz looked too small nine years ago to be a viable global player, it looks even smaller now.
Ballooning costs
Mercedes' research and development costs are expected to rise steeply as the industry strives to meet ever more stringent environmental standards. Mercedes' enviable profits, amounting to 9.6 percent of sales in the second quarter, are due in part to reductions in R&D and capital expenditure to around 7.5 percent of sales, said Merrill Lynch analyst Harald Hendrikse. Historically, its R&D and capital spending ranged between 10 percent and 11 percent of sales.
This time around, investors expect Daimler to look closer to home, to its Bavarian rival BMW, not for a full-blown merger mate but for a partner to generate economies of scale and share some costs.
Logical partners
The two carmakers already are working together to develop hybrid powertrains in a project with General Motors Corp.
"They are logical partners -- they're close in size and technological ability," says analyst Jürgen Pieper at Metzler Bank in Frankfurt.
The two also are increasingly threatened by the powerful grouping formed by Porsche's creeping takeover of Volkswagen AG, and its portfolio of brands including Audi.
"There's huge momentum at Volkswagen, and they might use their size better now than they have in the past," he said.
BMW is under even more pressure than Mercedes after a three-year drop in its margins. Last week CEO Norbert Reithofer laid out plans to wring out $8 billion in savings by 2012, partly by cutting purchasing costs. For now, BMW isn't interested in acquiring any brands -- and Reithofer laid out strict criteria for any acquisitions. But he no longer ruled them out.
Mercedes' next ally may be its old rival
M
SDNR
Kraftwagen König
- Messages
- 10,190
Re: Detroit News - Mercedes' next ally may be its old rival
I am really starting to believe that, despite the denials, some kind of very close relationship between BMW and Daimler is definitely going to happen -- and I don't think the fanboys of either car maker should be concerned .....it will be mutually beneficial ....and is quite possibly essential if both are to retain their preeminent position in the global market
I am really starting to believe that, despite the denials, some kind of very close relationship between BMW and Daimler is definitely going to happen -- and I don't think the fanboys of either car maker should be concerned .....it will be mutually beneficial ....and is quite possibly essential if both are to retain their preeminent position in the global market
- Messages
- 41,225
- Name
- Marcus
Re: Detroit News - Mercedes' next ally may be its old rival
Yeah I can see them working together on smaller cars and smaller engines and whatever tech comes along similar to hybrids, i.e. something that requires massive investment that would be a burden for either to make on their own. I would have loved to be in on the development meetings between Benz,BMW,GM, and Chrysler. Can you imagine the egos and distrust present?!?
M
Yeah I can see them working together on smaller cars and smaller engines and whatever tech comes along similar to hybrids, i.e. something that requires massive investment that would be a burden for either to make on their own. I would have loved to be in on the development meetings between Benz,BMW,GM, and Chrysler. Can you imagine the egos and distrust present?!?
M
SDNR
Kraftwagen König
- Messages
- 10,190
Re: Detroit News - Mercedes' next ally may be its old rival
LOL, yeah, it would be pretty tense I would think.
PanterroR
Lap Time Luminary
- Messages
- 21,864
Daimler, BMW Hooking Up?
As Chrysler ebbs, new possibilities emerge. by Joseph Szczesny http://www.thecarconnection.com/contact/index.asp?AuthorID=75 (2007-10-14)
With the separation from Chrysler complete, Daimler AG is very likely to pursue closer ties with its archrival BMW, according to knowledgeable sources inside the automaker.
For the past several weeks, the German press has been filled with speculation about joint development projects for everything from small cars to new engines. Moreover, Daimler chief executive officer Dieter Zetsche didn't exactly reject the idea of closer ties with BMW.
Daimler, in fact, made one known but ultimately unsuccessful bid for BMW back in the early 1960s and by and large the two companies have kept their distance for the past half-century or so.
In recent years, however, BMW and Daimler have collaborated successfully in the development of hybrids and more projects are possible if they are mutually beneficial, Zetsche said during the special shareholders meeting in Berlin earlier this month.
Meanwhile BMW executives have been more circumspect about the chances of closer ties with Daimler or its Mercedes-Benz car group.
One Daimler executive familiar with the company's strategic position told TheCarConnection that closer ties have advantages for both companies. Moreover, the joint hybrid development project has turned out to be a test of whether the two companies actually could work together.
The results were very reassuring, he said. "It made both sides more comfortable with the idea," he said.
Both companies are facing tougher fuel-economy and emission regulations in both Europe, North America and even in China. Meeting the challenges posed by the new regulations is very expensive and very complicated for both companies and is a major impetus behind the collaboration, the executive said.
Daimler is also a vulnerable company, the executive said. Zetsche has publicly dismissed the idea Daimler was vulnerable to a takeover bid by a private equity group or by another automaker. Despite Zetsche's assurances, however, without a high market capitalization, Daimler is an inviting target, the Daimler executive said. In fact, a rumor that apparently originated in Tokyo - and then swept through the German stock exchange in Frankfurt in early October - suggested that Toyota was actually interested in buying Daimler AG.
The idea Daimler was about to be swallowed by Toyota was dismissed by a spokesman for the German automaker. However, the idea did cause a stir and wasn't dismissed out of hand by outside analysts, who noted Toyota could always sell off some pieces of the company to pay for the transaction.
Moreover, while the German industry remains sheltered, in some respects, companies like Daimler have relatively few protections from an outside bidder, the Daimler executive noted.
Thus the new Daimler is under intense pressure now to keep its stock price or capitalization relatively high. The need to bolster the market capitalization also means Daimler will have to become much more cost-conscious than in the past when Daimler-Benz was noted for its open-handed spending policies.
BMW also faces its own problems. Its decade-long run that has brought it so much success appears to be losing some of its momentum, putting added pressure on the company's management.
The company's owners, the secretive and enormously wealthy Quandt family, also are coming under new scrutiny in Germany. A new television documentary has raised questions about the use of slave labor under the Nazis by BMW and its subsidiaries and by extension the Quandt family.
Other major German corporations such as Daimler-Benz and Volkswagen AG, and even General Motors and Ford, all addressed the same question more than a decade ago. Only recently, however, has BMW asked a group of outside scholars to examine company records.
The examination, however, is bound to raise collateral questions about whether the Quandt family is prepared or in a position to protect its ownership stake in the company in years to come.
Source: Daimler, BMW Hooking Up? - The Car Connection
As Chrysler ebbs, new possibilities emerge. by Joseph Szczesny http://www.thecarconnection.com/contact/index.asp?AuthorID=75 (2007-10-14)
With the separation from Chrysler complete, Daimler AG is very likely to pursue closer ties with its archrival BMW, according to knowledgeable sources inside the automaker.
For the past several weeks, the German press has been filled with speculation about joint development projects for everything from small cars to new engines. Moreover, Daimler chief executive officer Dieter Zetsche didn't exactly reject the idea of closer ties with BMW.
Daimler, in fact, made one known but ultimately unsuccessful bid for BMW back in the early 1960s and by and large the two companies have kept their distance for the past half-century or so.
In recent years, however, BMW and Daimler have collaborated successfully in the development of hybrids and more projects are possible if they are mutually beneficial, Zetsche said during the special shareholders meeting in Berlin earlier this month.
Meanwhile BMW executives have been more circumspect about the chances of closer ties with Daimler or its Mercedes-Benz car group.
One Daimler executive familiar with the company's strategic position told TheCarConnection that closer ties have advantages for both companies. Moreover, the joint hybrid development project has turned out to be a test of whether the two companies actually could work together.
The results were very reassuring, he said. "It made both sides more comfortable with the idea," he said.
Both companies are facing tougher fuel-economy and emission regulations in both Europe, North America and even in China. Meeting the challenges posed by the new regulations is very expensive and very complicated for both companies and is a major impetus behind the collaboration, the executive said.
Daimler is also a vulnerable company, the executive said. Zetsche has publicly dismissed the idea Daimler was vulnerable to a takeover bid by a private equity group or by another automaker. Despite Zetsche's assurances, however, without a high market capitalization, Daimler is an inviting target, the Daimler executive said. In fact, a rumor that apparently originated in Tokyo - and then swept through the German stock exchange in Frankfurt in early October - suggested that Toyota was actually interested in buying Daimler AG.
The idea Daimler was about to be swallowed by Toyota was dismissed by a spokesman for the German automaker. However, the idea did cause a stir and wasn't dismissed out of hand by outside analysts, who noted Toyota could always sell off some pieces of the company to pay for the transaction.
Moreover, while the German industry remains sheltered, in some respects, companies like Daimler have relatively few protections from an outside bidder, the Daimler executive noted.
Thus the new Daimler is under intense pressure now to keep its stock price or capitalization relatively high. The need to bolster the market capitalization also means Daimler will have to become much more cost-conscious than in the past when Daimler-Benz was noted for its open-handed spending policies.
BMW also faces its own problems. Its decade-long run that has brought it so much success appears to be losing some of its momentum, putting added pressure on the company's management.
The company's owners, the secretive and enormously wealthy Quandt family, also are coming under new scrutiny in Germany. A new television documentary has raised questions about the use of slave labor under the Nazis by BMW and its subsidiaries and by extension the Quandt family.
Other major German corporations such as Daimler-Benz and Volkswagen AG, and even General Motors and Ford, all addressed the same question more than a decade ago. Only recently, however, has BMW asked a group of outside scholars to examine company records.
The examination, however, is bound to raise collateral questions about whether the Quandt family is prepared or in a position to protect its ownership stake in the company in years to come.
Source: Daimler, BMW Hooking Up? - The Car Connection
Wolfgang
Kraftwagen König
- Messages
- 10,229
Mercedes mulls Mini motors - magazine
Thu Oct 18, 2007 12:59pm EDT
FRANKFURT, Oct 18 (Reuters) - Daimler AG plans to use four-cylinder direct injection engines developed by BMW's Mini brand and built by PSA in the next generation of Mercedes-Benz compact cars, a magazine reported.
Germany's Auto Bild, without citing sources, said Daimler intended to use the engines in the new B-Class compact from 2011. Cooperation would be confined to engines rather than complete compact car platforms from Mini, it added.
That meant prospects for using a Fiat platform for Mercedes compact cars had dwindled sharply, it said in the summary of a report to appear on Friday.
But Fiat Chief Executive Sergio Marchionne said a deal that Daimler might reach with one manufacturer did not necessarily exclude deals that it could make with others.
"The fact that it might have found an agreement with other suppliers does not mean that it is not interested in us," he told reporters at an event in Turin, home to the Italian automaker. "Mercedes needs a lot of engines, some of them from others and some of them from us."
Marchionne said on Oct. 11 that Fiat had been in touch with Mercedes about a possible alliance, as it had had with other manufacturers.
A Mercedes spokesman declined to comment in detail on the report, although he reiterated that the company was open for cooperation deals where they made sense.
"Mercedes is basically strong enough to implement future projects by itself," he said.
BMW declined comment.
The magazine said the next-generation B-Class would replace both the current A-Class and B-Class. It was planned to appear as three- and five-door models, a sport utility vehicle, a coupe and a convertible.
A final decision was due next month, it said.
(Additional reporting by Gianni Montani in Turin, Italy)
Article | Reuters
Thu Oct 18, 2007 12:59pm EDT
FRANKFURT, Oct 18 (Reuters) - Daimler AG plans to use four-cylinder direct injection engines developed by BMW's Mini brand and built by PSA in the next generation of Mercedes-Benz compact cars, a magazine reported.
Germany's Auto Bild, without citing sources, said Daimler intended to use the engines in the new B-Class compact from 2011. Cooperation would be confined to engines rather than complete compact car platforms from Mini, it added.
That meant prospects for using a Fiat platform for Mercedes compact cars had dwindled sharply, it said in the summary of a report to appear on Friday.
But Fiat Chief Executive Sergio Marchionne said a deal that Daimler might reach with one manufacturer did not necessarily exclude deals that it could make with others.
"The fact that it might have found an agreement with other suppliers does not mean that it is not interested in us," he told reporters at an event in Turin, home to the Italian automaker. "Mercedes needs a lot of engines, some of them from others and some of them from us."
Marchionne said on Oct. 11 that Fiat had been in touch with Mercedes about a possible alliance, as it had had with other manufacturers.
A Mercedes spokesman declined to comment in detail on the report, although he reiterated that the company was open for cooperation deals where they made sense.
"Mercedes is basically strong enough to implement future projects by itself," he said.
BMW declined comment.
The magazine said the next-generation B-Class would replace both the current A-Class and B-Class. It was planned to appear as three- and five-door models, a sport utility vehicle, a coupe and a convertible.
A final decision was due next month, it said.
(Additional reporting by Gianni Montani in Turin, Italy)
Article | Reuters
Wolfgang
Kraftwagen König
- Messages
- 10,229
I mean, what the hell did they had to do with FIAT?Mercedes and BMW deal expected by year end
Mercedes-Benz and BMW are expected to make an announcement before the end of the year about a new partnership in regards to the development of four-cylinder engines for the next-generation B-Class (codenamed C412) and Mini. There’s even talk of a possible tie-up with Audi further down.
The information comes from an inside source, who revealed to Automotive News Europe that the partnership could be extended within the near future. Germany’s carmakers are worried about development costs for a new range of low-emissions powertrains.
There’s no plan for platform sharing as yet because BMW doesn’t need one, but Mercedes needs a new design for its next-gen A and B-Class models due around 2010/11. The source explained that the cost-savings from the co-development of engines and transmissions will be enough in the meantime.
BMW currently has an engine deal with PSA Peugeot-Citroen for its current Mini and the Munich-based carmaker is also in talks with several Japanese carmakers.
http://www.motorauthority.com/news/industry/mercedes-and-bmw-deal-expected-by-year-end/
Mercedes-Benz and BMW are expected to make an announcement before the end of the year about a new partnership in regards to the development of four-cylinder engines for the next-generation B-Class (codenamed C412) and Mini. There’s even talk of a possible tie-up with Audi further down.
The information comes from an inside source, who revealed to Automotive News Europe that the partnership could be extended within the near future. Germany’s carmakers are worried about development costs for a new range of low-emissions powertrains.
There’s no plan for platform sharing as yet because BMW doesn’t need one, but Mercedes needs a new design for its next-gen A and B-Class models due around 2010/11. The source explained that the cost-savings from the co-development of engines and transmissions will be enough in the meantime.
BMW currently has an engine deal with PSA Peugeot-Citroen for its current Mini and the Munich-based carmaker is also in talks with several Japanese carmakers.
http://www.motorauthority.com/news/industry/mercedes-and-bmw-deal-expected-by-year-end/
EnI
Piston Pioneer
- Messages
- 14,086
New thread created:
http://www.germancarforum.com/autom...n-martin-talk-about-possible-cooperation.html
All posts about MB & AM moved there.
This thread is about MB & BMW cooperation news.
http://www.germancarforum.com/autom...n-martin-talk-about-possible-cooperation.html
All posts about MB & AM moved there.
This thread is about MB & BMW cooperation news.
coolraoul
Torque Titan
- Messages
- 4,602
AMS says the new A and B-Class won't profit from any cooperation for their platform. New MB platform, FWD.
But the motors will surely come from the BMW/PSA cooperation. In exchange Merc will give the Bluetech tom BMW, it seems.
The A should only be coupe and cabrio, and the B the four doors. A little suv is possible.
But the motors will surely come from the BMW/PSA cooperation. In exchange Merc will give the Bluetech tom BMW, it seems.
The A should only be coupe and cabrio, and the B the four doors. A little suv is possible.
EnI
Piston Pioneer
- Messages
- 14,086
Fishy.
2 comments:
a) either BMW developed their SCR system by themselves
b) or they have already got it from the MB
Since the system is already developed & production ready, and clean diesel cars are coming already in 2008.
More possible: BMW getting BlueTec Hybrid tech from MB - since MB development is already done, while BMW are still "developing" - and getting know-how from MB will speed up the development. Also the common purchasing / production of Clean Diesel Hybrids is also possible.
- Messages
- 41,225
- Name
- Marcus
STUTTGART, Germany — Mercedes-Benz has rejected the idea of a small-car joint venture. After studying proposed ventures with both Fiat and BMW, Mercedes-Benz has decided to push ahead with development of the next-generation A- and B-Class on its own.
Insiders say Mercedes will rely on internal efficiency moves to cut costs on the new entry-level models. Sources tell Inside Line that the efficiency moves are an extension of the Mercedes CORE cost-cutting program that has been one of the first initiatives of Dieter Zetsche's leadership.
Commenting about the end of the Fiat and BMW talks, Zetsche said: "In certain model lines we have certain themes and principles closely networked. We would have been forced to throw them overboard had we shared a platform with another carmaker." He said the new program is for "a platform below the C-Class with front-wheel drive and high-mounted transverse-sited engines." Mercedes-Benz is rumored to be considering bringing out the third-generation A-Class as a three-door only, possibly adding a cabriolet version later. The second-generation B-Class is set to grow in size to roughly match the current Volkswagen Touran.
There is also reportedly an idea in the works for a third small car. It would be a junior-size SUV based on Mercedes' new front-wheel-drive platform, sources tell Inside Line. The new model would be positioned under the upcoming GLK — and would compete head-on with the Audi A3 and the BMW X1.
Mercedes is also reportedly considering a new low-cost assembly plant in eastern Europe to get around the high cost of production at the automaker's Rastatt plant in southwest Germany. Target annual production at a new plant would be some 300,000 units.
What this means to you: Mercedes stems the tide of tie-ups with a bold set of plans it will carry out on its own. — Paul Lienert, Correspondent
Mercedes-Benz To Go It Alone on Next A- and B-Class
M
Insiders say Mercedes will rely on internal efficiency moves to cut costs on the new entry-level models. Sources tell Inside Line that the efficiency moves are an extension of the Mercedes CORE cost-cutting program that has been one of the first initiatives of Dieter Zetsche's leadership.
Commenting about the end of the Fiat and BMW talks, Zetsche said: "In certain model lines we have certain themes and principles closely networked. We would have been forced to throw them overboard had we shared a platform with another carmaker." He said the new program is for "a platform below the C-Class with front-wheel drive and high-mounted transverse-sited engines." Mercedes-Benz is rumored to be considering bringing out the third-generation A-Class as a three-door only, possibly adding a cabriolet version later. The second-generation B-Class is set to grow in size to roughly match the current Volkswagen Touran.
There is also reportedly an idea in the works for a third small car. It would be a junior-size SUV based on Mercedes' new front-wheel-drive platform, sources tell Inside Line. The new model would be positioned under the upcoming GLK — and would compete head-on with the Audi A3 and the BMW X1.
Mercedes is also reportedly considering a new low-cost assembly plant in eastern Europe to get around the high cost of production at the automaker's Rastatt plant in southwest Germany. Target annual production at a new plant would be some 300,000 units.
What this means to you: Mercedes stems the tide of tie-ups with a bold set of plans it will carry out on its own. — Paul Lienert, Correspondent
Mercedes-Benz To Go It Alone on Next A- and B-Class
M
BMW-Mercedes cooperation may grow even tighter
Those who have followed the saga of the BMW and Mercedes cooperation talks know that the two makers have been cautious - to say the least - in working together, but at the same time the continuous nature of the talks show that both are interested in the idea. Germany’s two most prestigious car makers are already expected to announce by year's end an agreement to share costs by cooperating on engine construction and development, but new rumours now have the two luxury-performance giants approaching each other for an even more intimate agreement.
Although BMW’s cost-savings target of €8 billion ($11.6 billion) is expected to come mainly from lower material costs (ostensibly through larger quantity purchases to be shared between Mercedes and BMW), the new information suggests the savings will also come from joint construction of axles, steering units and possibly even drive systems, reports Bloomberg.com, citing an article in the Financial Times Deutschland. A deeper cooperation with Mercedes would make sense, since BMW is already working with PSA Peugeot-Citroen to provide motors for its Mini. More materials and technologies would be suitable for cross-platform use with a partner like Mercedes, meaning more corporate synergies - which is business-speak for lower costs.
Another possible reason the two German giants might be considering working together is a detente - of sorts - between the historic rivals. In the past, BMW has billed its cars as “The Ultimate Driving Experience” while Mercedes has always prided itself for being a purveyor of “refined luxury.” While the two goals may not seem directly at odds, taking either as priority over the other can lead to conflict. However, as each maker evolves they seem to be coming closer and closer to a nexus of performance and luxury. Breaking down the walls between the ultimate driving experience and refined luxury could lead both BMW and Mercedes into a future of ultimate refined luxury driving experience - a future neither maker would oppose.
One thing the two luxury manufacturers may want to be careful to avoid, however, is buckling to the desire to be all things to all people - as each marque expands to fill markets traditionally populated by value or commercial makers, they dilute their luxury (or performance) cachet. And melding BMW with Mercedes to the point that the two companies become a BMercW hybrid would not make each company twice what it is now, regardless of what it does for the bottom line.
http://www.motorauthority.com/news/industry/bmw-mercedes-cooperation-may-grow-even-tighter/#more-4470
Those who have followed the saga of the BMW and Mercedes cooperation talks know that the two makers have been cautious - to say the least - in working together, but at the same time the continuous nature of the talks show that both are interested in the idea. Germany’s two most prestigious car makers are already expected to announce by year's end an agreement to share costs by cooperating on engine construction and development, but new rumours now have the two luxury-performance giants approaching each other for an even more intimate agreement.
Although BMW’s cost-savings target of €8 billion ($11.6 billion) is expected to come mainly from lower material costs (ostensibly through larger quantity purchases to be shared between Mercedes and BMW), the new information suggests the savings will also come from joint construction of axles, steering units and possibly even drive systems, reports Bloomberg.com, citing an article in the Financial Times Deutschland. A deeper cooperation with Mercedes would make sense, since BMW is already working with PSA Peugeot-Citroen to provide motors for its Mini. More materials and technologies would be suitable for cross-platform use with a partner like Mercedes, meaning more corporate synergies - which is business-speak for lower costs.
Another possible reason the two German giants might be considering working together is a detente - of sorts - between the historic rivals. In the past, BMW has billed its cars as “The Ultimate Driving Experience” while Mercedes has always prided itself for being a purveyor of “refined luxury.” While the two goals may not seem directly at odds, taking either as priority over the other can lead to conflict. However, as each maker evolves they seem to be coming closer and closer to a nexus of performance and luxury. Breaking down the walls between the ultimate driving experience and refined luxury could lead both BMW and Mercedes into a future of ultimate refined luxury driving experience - a future neither maker would oppose.
One thing the two luxury manufacturers may want to be careful to avoid, however, is buckling to the desire to be all things to all people - as each marque expands to fill markets traditionally populated by value or commercial makers, they dilute their luxury (or performance) cachet. And melding BMW with Mercedes to the point that the two companies become a BMercW hybrid would not make each company twice what it is now, regardless of what it does for the bottom line.
http://www.motorauthority.com/news/industry/bmw-mercedes-cooperation-may-grow-even-tighter/#more-4470
Similar threads
