Detroit News: BMW and Mercedes to Merge?
BMW and Mercedes have been rivals since 1929, but Detroit News columnist Christine Tierney reckons the two automakers are eyeing each other across the dance floor. Tierney points-out that Daimler-Benz (Mercedes to you and me) hooked-up with Chrysler to fend off the possibility of a hostile takeover. Now that the Chrysler divorce is going through, they're even more vulnerable than before. What's more, Tierney says the folks sheltering under the three-pointed star are "increasingly threatened" by Porsche's takeover of the VW Group. As Mercedes needs to off-load some of their R&D costs, and BMW CEO Norbert Reithofer just declared his intention to "wring out" $8b in savings to bolster his company's margins, and BMW is working with GM and Mercedes on hybrid powertrains… We reckon this Yenta's got a yen for mischief, and under-estimates the weight of history and the bad blood that flows between the Germans. Still, just ask Dr. Z; stranger things have happened.