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Updated: Decision on BMW-Daimler partnership expected in November

Updated: Decision on BMW-Daimler partnership expected in November

Viknesh Vijayenthiran

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Updated: Decision on BMW-Daimler partnership expected in November

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Update: Only last week BMW and Fiat confirmed a tentative agreement to investigate the feasibility of co-developing a new compact car platform for the next-generation Mini and several Fiat and Alfa Romeo models, ending months of speculation and putting doubt towards the chances of a further tie-up between BMW and Daimler.

Daimler was also looking to partner with BMW to develop a new platform for its next-generation A and B-Class models, but last month Daimler announced that it would develop the cars itself. Auto Motor und Sport is now reporting that both German luxury brands will make a final decision about working together by the end of November.

Both companies are looking at making the announcement at the Los Angeles Auto Show that same month. While the talks are likely to be less focused on platform-sharing, officials at both companies have hinted at sharing components that can’t be seen by consumers such as air conditioning units and brakes.

Original: Despite numerous attempts by German rivals Mercedes-Benz and BMW to form a deal for swapping engines and vehicle platforms, latest reports coming out of Germany now claim talks between the two carmakers have come to an end. Mercedes-Benz has been looking for a partner to develop a new small car platform for its next-generation A and B-Class models, but now it appears it will go it alone.

The information comes from Daimler boss Dieter Zetsche, who told Auto Motor und Sport that Mercedes is no longer seeking a partnership with BMW and also confirmed that previous talks with Fiat had also ended without a result. According to Zetsche, the synergies formed from any partnership would have been too small to make the deal worthwhile.

Mercedes will now focus on cutting costs for its new A and B-Class models. One of the key strategies is to move production from the current Rastatt plant in Germany to a low cost site in Eastern Europe, the most likely site being Cluj in Romania. The final decision is expected to be made in the second quarter of the year.