This is not the first time Daimler and BMW have been in talks. They met previously to talk about the possible sale of BMW engines to Daimler, Fiat and GM. While BMW’s most prized engines wouldn’t be on the table, some of its more ubiquitous offerings may become part of its plan to increase revenue streams in a time of slowing sales growth. BMW is expected to have come to a decision by the end of the year.
Update: While BMW recently announced a new partnership with Fiat, the carmaker’s ongoing talks with arch-rival Mercedes-Benz are still well in progress and have reportedly turned to negotiations over procurement and purchasing agreements. Both German luxury marques are looking to reduce costs by combining their purchases for vehicle components that aren’t visible to consumers, such as automatic window motors, air-conditioning systems and entry-level engines.
Furthermore, Auto Motor und Sport is reporting that BMW and Mercedes will share development for their future V12 engines and could possibly even include Aston Martin. According to reports leaked late last week, Aston Martin and Mercedes are already tied in negotiations and are planning to share everything from platforms to engines and transmissions.
Original: More details surrounding the ensuing talks between BMW and Daimler are starting to emerge, with the latest information coming directly from Daimler CEO Dieter Zetsche. Those who have followed the saga of the BMW and Mercedes cooperation talks know that the two makers have been cautious – to say the least – in working together, but at the same time the continuous nature of the talks show that both are interested in the idea.
Speaking with German newspaper Sueddeutsche Zeitung, Zetsche told reporters that discussions so far had centered on the shared development of powertrains rather than complete vehicle platforms and that BMW was the most logical carmaker for Daimler to partner with. BMW previously ruled out any platform sharing deal because it doesn’t need any. Daimler, on the other hand, requires a new, more premium design for its next-generation A and B-Class (codenamed C412).
The first deal expected to be announced is the joint-development of new four-cylinder engines for the next-generation B-Class and Mini. Germany’s carmakers are worried about development costs for a new range of low-emissions powertrains. BMW and Mercedes also want to increase the number of shared drivetrains to match the level that Audi enjoys by being partnered with Volkswagen.