BMW and Mercedes move towards closer co-operation

Posted Mon Aug 27 2007 11:30 AM by Viknesh Vijayenthiran

Could two of the largest luxury automobile manufacturers in the world be sizing each other up for a possible union? According to an anonymous Mercedes exec, the idea isn’t as far fetched as it seems, stating that “finally we can cooperate with a company that is only two hours away from us, speaks the same language, and has the same target customer.”

BMW Marketing board member Michael Ganal told a German magazine that Mercedes would be a logical choice for a partnership with BMW as “both brands are in the luxury segment, both are dependent on high technology, [and] both are independent but not the largest manufacturers.”

Other BMW executives have been whispering about closer ties to Daimler, noting that “cooperating on engines and components,” as well as common purchasing would allow both manufacturers to cut costs, reports Automotive News. BMW and Mercedes are already developing hybrid technology together, and last month we also reported on rumors of Mercedes and BMW in negotiations to build a sub-compact car.

The current Daimler CEO did not rule out the opportunity of working with BMW, stating that Daimler “would welcome other opportunities” however only time will tell if the two German giants can actually play nice.

MotorAuthority