We reported earlier in the year that BMW and Daimler Benz were working on finalizing a deal that would allow the companies greater economies of scale in purchasing. The deal was said to incorporate items from third party vendors with both brands making purchases together of non-specific items. “We meet with suppliers, assess where we require equal parts and subcomponents, such as xenon ballasts and burners, heat exchangers and actuators of air conditioning, ” said Draeger to the German Magazine Auto Motor und Sport.
Though no deal was officially announced, Draeger told the magazine that things were in motion and that no official deal needed to be announced for the two to see the benefits of furthering their economies of scale. Spokesmen from the companies followed up by saying that cooperation has not been finalized but both companies explore opportunities for joint purchasing continuously.
Joint Twelve-cylinder engine in discussion
BMW continues to explore avenues in which they can reduce costs. BMW would like to reduce the costs of development and production by selling their engines to other manufacturers. The latest talk is that BMW is offering up the next generation 12 cylinder to be utilized in the 7 Series to Daimler.
“We are basically ready, to sell our engines to competitors, ” said Draeger. “And yes, we are speaking very frankly with Mercedes on the possibilities for our engines. ” More “talks, but no results ” were hadwith Aston Martin on the use of the twelve-cylinder BMW power plant.
Draeger also announced that BMW had made the American car manufacturers: GM, Chrysler and Ford, which currently do not have the latest car diesel technology, an offer to purchase the renowned Advanced Diesels from BMW. “If U.S. manufacturerswarm up to the diesel, we are ready, to deliver our highly developed products to them in the United States, ” said Draeger. “We have exactly the right offer for them and would save them development costs. ”
Also, worth noting is that BMW has struck a deal with Alfa Romeo to jointing purchase items and develop future products. This build on the co-development of engines with PSA (Peugeot). It appears that BMW has realized they need to work more with other manufacturers to reach economies of scale than try to single handedly do it by flooding the market with over subsidized leases. All this looks good for the future of BMW and could be why we have very little lately about the famed V12.