Mercedes would like to expand plans for cooperation “as equal partners” with BMW

News | May 8th, 2009 by 12
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Daimler would like to expand plans for cooperation “as equal partners” with BMW beyond an agreement to bundle purchasing of components, Chief Executive Dieter Zetsche …

Daimler would like to expand plans for cooperation “as equal partners” with BMW beyond an agreement to bundle purchasing of components, Chief Executive Dieter Zetsche told Reuters.

“In general I only see a few areas where working together is in principle out of the question,” Zetsche said in an interview at Daimler headquarters in Stuttgart’s Untertuerkheim district.

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“It’s clear that we are two independent companies whose success in the market depends of the strength of our brands, so brand integrity is a cardinal imperative. This has to be considered at all times but it is not something that would prevent broad cooperation.”

While he would not say what areas were off limits, he explained that Daimler had to ensure that when its customers drive off a dealer lot, they believe they have bought a luxury car with the unique characteristics of a Mercedes.

Unlike German rival Audi or Volvo of Sweden, BMW and Mercedes share a specialization in rear-wheel-drive cars. At the same time the performance and design of their cars appeal to two largely different customer groups.

“The issues we are discussing (with BMW) have to be examined closely from the very beginning in order not to realize later halfway through that you made a mistake. That is why any results we might achieve would be that much more thorough,” he said.

Zetsche refuted the credo of pure production size that has come to exemplify Sergio Marchionne’s vision at Fiat (FIA.MI), but he acknowledged that a key ingredient to success was the consistent use of modules to build Mercedes-Benz cars across segments as a method of gaining economies of scale.

“That offers the main opportunity for volume effects and then we can look at whether they can be applied jointly across company borders, which is certainly a sensible goal,” he said.

Read Full Article at Reuters

12 responses to “Mercedes would like to expand plans for cooperation “as equal partners” with BMW”

  1. Giom says:

    There’s something quite special about BMW and Merc co-operating at some level. As long as they keep their independance and core brand values, there isn’t a reason under the sun why they shouldn’t do it.

    If it was Audi, it would’nt sit right. Even though Audi is German, its culture is no where close to being as pure as the other two.

    Now! If Merc could give BMW Sauber a few tips on winning a GP season… ;)

  2. VeryBold says:

    I hope BMW will stay at a distance with Merc. BMWs philosophy is far superior than Mercs. But sharing certain technologies isn’t really a bad thing.

  3. Carlos Perez says:

    Merc, has been insisting a lot with this partnership, they seem to really want something the BMW develop, maybe they have other plans that just been partners.

    But again that just me been paranoid, can’t really decide if its good or bad.

  4. 565hy7 says:

    oh crud is daimlerchrysler gonna take over bmw

    NOOOOOOOOOOOOOOOOOOOOOOOOOO

    NO PARTENER SHIP WITH MERC BNZ

    ITS THE WORST CAR IN THE WORLD

  5. Horatiu B. says:

    And no one even noticed the cool photo :)

  6. Jag says:

    @Horatiu B.: I did see it, and I believe everyone saw it. but the news took all the concern.

  7. lisiy says:

    bad news….. :( I do not believe Mercedes

  8. X5 SoB says:

    BMW has a greater commitment to core values and driver-centric engineering than Mercedes, and I see this kind of cooperation only benefiting Mercedes and hurting BMW. Unless it’s just inconsequential stuff like windshield washer resevours, servos, wiring, etc., then it would be okay, but suspension pieces, transmissions, brakes, etc., that would be bad.

  9. Horatiu B. says:

    @Jag: I know Jag…I was kidding…Keep in mind, the news come from MB, still no reply from BMW. This is not really new to be honest, we heard about an MB-BMW partnership when the Quandt family spoke about it

  10. Lance says:

    I think they are talking about sharing parts like door rubber inserts, window motors, wiper motors etc and not necessary sharing underpinnings, etc. But it is interesting that this news comes along after Merc posted a more than 10 times loss in Q1 when compared to BMW. Both are premium brands so I don’t think it would do the damage that audi and VW are breeding where The A3 is basically a cheap VW Golf and the A4 is basically a Jetta

  11. Damien says:

    I have faith that BMW will say no thanks…

  12. John Pham says:

    Wanna know why BMW should not merge with MB? Because sooner or later, Audi will be making fun of them both for making trucks and buses that my nieces go to school on.

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