NEWS FLASH: BMW and Daimler Agree

Sections: In the Press Apr 22nd, 2008

We have just received some information that the two brands are in fact in the early stages of an agreement.

BMW and Daimler have agreed (in principle) to work in cooperation for purchasing and in research and development. This is still in the early stages but we have learned that BMW pressured Daimler into this via stock owners of both companies. BMW is (the Quandts) seeking a minority share in Daimler AG to ensure long-term cooperation and an ex-BMW board member on the board of Daimler.

This agreement once finalized will be limited. It will only be relative to new technology and to lowering emissions. This cooperation is much like the current agreement for hybrid technologies but now will also include purchasing and development of other electronics. The agreement or one like it is necessary for the two to achieve greater economies of scale and to lower the R&D costs associated with developing lower emissions vehicles that will soon be required in many countries.

The original story about discussions being underway can be attributed to the AP via Business Week here

Written By: Michael

3 Comments

Jon Apr 22nd, 2008 Link

Very interesting news, should be a good move from both companies. Both have valuable lessons to teach each other. Think Daimler is likely to get more out of this than BMW is likely to achieve.

illegalprelude Apr 22nd, 2008 Link

yea, with Daimler pushing out huge engines all the time, I dont really see what BMW has to gain while BMW has the MINI and 1series. So im not seeing it…but hopefully for the better

Michael Apr 22nd, 2008 Link

Actually, BMW has the most to gain. What most people do not realize is that Daimler has lots of patents and more on the way in the form of green tech. MB may be putting out bigger motors but those are countered by SMART. BMW offers technology integration and the 1% economy technologies. BMW has many concepts for real use but the meat is really from Daimler.

Some of Daimlers patented tech: Bluetech, Adblue, Diesotto, the the Next generation advanced fuel-cell, electrical SMART, Li-Ion batteries with advanced alternator, and of course the production ready Hydrogen bus.

Daimler will be investing Billions in the next several years in just Green Tech.

BMW has the most to gain with this overall.

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