Daimler May Choose Small-Car Partner in Early 2010, CEO Says

[Wolfgang]

Daimler May Choose Small-Car Partner in Early 2010 (Update1)

by Chris Reiter

Dec. 14 (Bloomberg) --Daimler AG, the world’s second- largest maker of luxury vehicles, may choose a partner early next year to help it expand the Smart city-car brand and build engines for the Mercedes-Benz B-Class and other compact models.

“The first half of next year, we should know if and with whom we should go forward with,” Chief Executive Officer Dieter Zetsche said today in an interview at a company event at the Formula One racetrack in Abu Dhabi. “For Smart, it would make sense to have a very close-knit cooperation,” while for A- and B-Class models, the linkup would focus on building engines and other components.

Automakers are forging partnerships to reduce expenses and increase global reach after demand plunged in the recession. BMW, the No. 1 luxury-car manufacturer, is working with PSA Peugeot Citroen on Mini engines and building a factory with Brilliance China Automotive Holdings Ltd. Volkswagen AG agreed Dec. 9 to buy a stake in Suzuki Motor Corp. to pursue energy- efficient small cars, and Peugeot is weighing an investment in Mitsubishi Motors Corp.

Daimler’s partner will probably be the same for Smart and Mercedes-Benz small cars, Zetsche said, declining to identify candidates. The cooperation would be “helpful” for the company to reach its goal of boosting the operating profit margin at Mercedes-Benz to 10 percent of sales, the CEO said.

‘Very Logical’

“Daimler is taking a very logical step,” said Marc-Rene Tonn, a Hamburg-based analyst at M.M. Warburg, a German private bank. “The small-car segment is indeed the field where luxury makers and mass-market manufacturers are in direct competition. It makes perfect sense for Daimler to go on a partner search there.”

Zetsche said in November that the Mercedes-Benz brand may be able to overtake Bayerische Motoren Werke AG for second place in luxury-auto sales in the U.S. and China. Toyota Motor Corp.’s Lexus is the top-selling high-end line in the U.S., while Volkswagen’s Audi leads in China.

U.S. sales of Mercedes autos through October totaled 153,713, trailing BMW’s 160,666, according to researcher Autodata Corp. of Woodcliff Lake, New Jersey. Mercedes’s Chinese sales jumped 68 percent in the first 11 months of 2009 and the full-year tally will likely pass 65,000, the company said today. Through November, BMW had Chinese sales of more than 80,000 vehicles, helped by a 40 percent surge that month.

Daimler may cooperate with Renault SA on small cars and engines, Manager Magazin reported last month, citing unidentified company sources.

Savings Plan

Daimler predicts it will trim spending by as much as 5 billion euros ($7.5 billion) in 2009 and aims to hold on to those savings next year, Zetsche said in an interview at the carmaker’s headquarters in Stuttgart, Germany, on Nov. 11. At the same time, the company is adding small models.

Zetsche, 56, took charge of the Mercedes division in September 2005 after heading the former Chrysler division, and three months later became CEO.

The executive also said today that Daimler, which is also the world’s largest truckmaker, is in “no hurry” to increase its stake in Russian heavy-vehicle maker Kamaz.

To contact the reporter on this story: Chris Reiter Abu Dhabi via creiter2@bloomberg.net

 

[Wolfgang]

Renault and Daimler look to jointly cut costs

PARIS — Renault SA chief operating officer Patrick Pelata says the French car maker is talking with potential partners, including Germany's Daimler, to cut costs or boost volumes.

Pelata said Thursday talks with Daimler are no further advanced than with other car makers, and that there is no guarantee a deal will be struck.

Renault's priority is to find savings through its alliance with Nissan and help struggling Russian car maker Avtovaz, in which Renault has a 25 percent stake.

Pelata says revenue could be 17 to 18 percent lower this year. That sort of revenue has prompted big changes in the car industry.

Copyright © 2009 The Associated Press. All rights reserved.

The Associated Press: Renault and Daimler look to jointly cut costs

 

[Mr Robert]

So, the small cars manufacturers are up for picking by Mercedes now are they

 

[EnI]

Yep, That could be it.

Daimler pairing up with Renault, BMW with Peugeot. Not mergers though!

 

[Wolfgang]

Renault in partnership talks with Daimler, Pelata says

Paul McVeigh

Automotive News Europe
December 17, 2009 07:00 CET

MUNICH -- Renault SA is in talks with Daimler AG and other companies about partnerships, the French carmaker's Chief Operating Officer, Patrick Pelata, said.

Pelata's comments on Thursday came after Daimler CEO Dieter Zetsche said earlier this week that his company is talking with Renault and other automakers about joint projects.

Press reports have said Daimler is seeking a partner to help it expand the Smart city-car brand and to jointly develop engines for its Mercedes-Benz B Class and other compact models.

Pelata said Renault's discussions cover various areas of possible cooperation including engines, transmissions and platforms.

"Yes, we are discussing serious matters with Daimler," Pelata told journalists on Thursday. "Carmakers are holding discussions with each other. There are a lot at the moment."

He added: "We're in talks with at least someone on all subjects."

Pelata said that during the global crisis, carmakers "try to share the costs of access to new technologies, like the electric vehicle, batteries, fuel cells -- anything that is very expensive ... and which is a fixed cost but which they don't want to abandon because they think these technologies could be necessary in the future"

A partnership, which could take in small car platforms or electric vehicles, would be "more positive for Daimler than for Renault, given their relative size," Credit Suisse analyst Stuart Pearson said.

New alliances will cut costs

Automakers are seeking new partnerships and alliances to cut fixed costs and boost volumes as the car industry tries to become more efficient as it emerges from a deep crisis.

Zetsche told Germany's Auto Motor Sport magazine on Feb. 14 that Daimler likely would announce a partner in the first half of next year. Zetsche said Daimler is speaking with other potential cooperation partners besides Renault.

"It would be sensible to to develop components with another automaker for cars below the C Class to increase volumes,' Zetsche told the magazine. "We're exploring possibilities but not only with Renault."

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Some reports have said Daimler and Renault are planning to collaborate on a new rear-engine micro-car platform for the next generation of Smart cars arriving in 2013 including a four-seat model and for Renault's new Twizy electric vehicle.

Daimler is said to be developing new three-cylinder gasoline and diesel engines and could also supply those to Renault.

Renault showed a Twizy 1+1 city car concept at the Frankfurt auto show in September and said it will build a production version in its Valladolid plant in Spain.

A Daimler spokesman said: "We speak to various manufacturers, including Renault, about possibilities to cooperate".

Reuters contributed to this report

You can reach Paul McVeigh at pmcveigh@crain.com.