Are You Sitting Down? BMW And Daimler Plan Backward Alliance

Bertel Schmitt
by Bertel Schmitt

Again and again, the mucky-mucks of Daimler and BMW had sworn to do stuff together, buy parts, build engines, there are occasional rumors that the two will tie the knot. North and South Korea will unite and hell will turn into a glacier before that happens – which is not saying that it might not. Some day. In a galaxis far away. As long as Daimler and BMW employ engineers who make crusaders look like the Peace Corps, no jointness between the two luxury brands has any perspective. Every win-win so far has turned into a whine-whine. But it’s not for a lack of trying.

BMW and Daimler will “extend their cooperation on joint development and purchasing to include car-seat frames to lower costs,” reports Bloomberg. Yes, it’s down to car-seat frames.

Huge synergies are in the offing. Both may save anywhere between $194m to $260m a year if the frames are used across all models, BMW spokesman Frank Wienstroth said. What are the bets that some gentlemen in Sindelfingen will say: ”They can put those seats in a tent at the Oktoberfest, but not in OUR cars?”

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • WhatsMyNextCar WhatsMyNextCar on Jul 27, 2010

    Look out, BMW. The last time Mercedes aligned with a company, the other party got the shaft. Chrysler got a couple of aged platforms and Mercedes got all their cash reserves.

  • Philadlj Philadlj on Jul 27, 2010

    Perhaps this is something Ford and GM should sit down and think about...

    • See 1 previous
    • Robert.Walter Robert.Walter on Jul 27, 2010

      NVG has been dying a slow death for about 20 years. The Muncie plant went back to GM, was closed, given to the city and demolished. After this, GM sold its ca. 35% share of the JV back to DCx in about 2002, then DCx sold 80% to Magna. But the UAW rejected concessions, so Magna announced they would close the plant in Syracuse in 2011.

  • Old Guy Old Guy on Jul 27, 2010

    Car seat frames -- this is extraordinary! What next, ashtray lids?

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