Report: BMW, Daimler to end hybrid partnership

BMW and Daimler have been working more and more closely together over the past several years, especially since the need to share costs and improve bottom lines has become so sharp in 2009. But despite ongoing partnerships for vehicle safety technology, the hybrid partnership that spawned the two-mode hybrid appears to be in trouble.

A report emerging from Germany today via Auto Motor & Sport has a BMW spokesperson casting doubt on the continuance of the partnership with Daimler. The reason for the doubt? There are currently talks underway with other carmakers that might yield a better solution for BMW.

The report says that Daimler wants the partnership to continue due to the cost savings it can deliver over the coming years as hybrids expand through the Mercedes-Benz lineup, including the S400 and ML450 hybrids.

Daimler's own plans for a fully-electric future are being laid at a breakneck pace, however, so a hiccup in its hybrid operations may not have as serious an impact as might appear at first glance.

On the other hand, until electric drive expands outside of the Smart lineup in Daimler's plans, hybrid drive is the only way to make its Mercedes offerings greener without sacrificing significant performance.