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Mercedes, Bmw Tie the Knot

Mercedes, Bmw Tie the Knot

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Home Page > Automotive > Cars > Mercedes, Bmw Tie the Knot

Mercedes, Bmw Tie the Knot

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Posted: Oct 23, 2008 |Comments: 0
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Okay, the title of this article is a bit of an exaggeration – Germany’s two biggest luxury automakers are not merging operations. Instead, Daimler AG and Bayerische Motoren Werke (BMW) have reached an agreement where the two companies will begin sharing some components in a bid to collectively reduce their costs.

Specifically, the automakers will take advantage of their respective economies of scale and use their collective might to purchase car parts in greater numbers and for less cost per part. Parts including brake components, certain cabin materials, and possibly the sharing of safety components could be included in this deal.

BMW has even discussed selling engines and gearboxes to Mercedes which would be a highly unusual agreement, given that these two components are often what distinguishes the German models the most. However, the current economic climate around the world is pretty dismal, making such a deal advantageous to all sides. The only concern would be consumers – how would they view two similar models which aren’t all that different under the hood?

One engine being considered by BMW to supply to Mercedes is its new V12 powerplant which it plans to unveil in 2009 for use in the BMW 7-Series and in a new ‘baby’ Rolls-Royce sedan. Based on an extended version of BMW’s new turbocharged 4.0L V8, the new engine might be useful for Mercedes in both the S-class as well as in the Maybach (Mercedes’ ultra-luxury brand).

BMW has hinted that Mercedes isn’t the only automaker interested in company technology. Aston Martin has expressed interest in hammering out a deal with the German automaker and one American manufacturer has expressed interest in BMW diesel technology. Likely, that company is General Motors who is looking to expand the Cadillac CTS line up to include at least one diesel powerplant that is ready for the US market.

Besides BMW and Mercedes, other automakers are cutting deals in a bid to save money. Most notably are Nissan and Chrysler, Ford and General Motors, a number of Japanese brands with each other, and Chrysler and Volkswagen. Whether these arrangements will diminish the independence of any automaker remains to be seen, but the savings that can be realized may be something too good for any of them to pass up.

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Matthew C. Keegan -
About the Author:

Matthew C. Keegan is a freelance writer who resides in Cary, North Carolina. Matt provides magazine, web content, and article writing services to clients all over the world serving the automotive, human interest, and business communities. Please visit Auto Trends to review his automotive weblog.

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Source: http://www.articlesbase.com/cars-articles/mercedes-bmw-tie-the-knot-614456.html

Article Tags:
mercedes, bmw, cars, autos, engines, tranmissions, gearboxes, business agreement, germany, luxury cars, daimler, rolls royce, maybach