BMW Considers Joint Mobility Venture With Daimler

Matt Posky
by Matt Posky

Despite every manufacturer on the planet eager to inject mobility services into the business, the array of programs that encompasses has yet to establish itself as a reliable source of revenue. Frankly, the whole thing seems like a gigantic money pit for the industry made worse by how loosely the term is defined. Customer data acquisition, vehicle connectivity, electrification, subscription programs, over-the-air updates, and autonomous driving all fall under the umbrella of “mobility” that’s costing automakers a bundle with the promise of being profitable later.

This week, BMW CEO Oliver Zipse acknowledged the premium his company has had to pay to maintain such programs and that it’s considering a joint venture with Daimler AG to help mitigate cost. This would presumably expand the German-based Free Now car-sharing program they already share — though BMW was cagey on the details.

Partnering has become the default industry solution to blowing billions on unripened mobility projects. According to Reuters, BMW is even willing to consider a JV that would involve bringing in new partners or possibly a partial sale. Uber was previously rumored to have offered the company over $1 billion for Free Now.

Ideally, the automaker would like to continue participating in the mobility services market “whether we bring in new partners or whether we sell it,” Zipse told reporters on Wednesday.

“This is a very dynamic environment,” he said. “You will see where we make one or the other move.”

[Image: Sklo Studio/Shutterstock]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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 4 comments
  • Schmitt trigger Schmitt trigger on Nov 11, 2020

    All automakers will be hard pressed to recoup the enormous investment. In plain English, vehicles will become more expensive.

  • SCE to AUX SCE to AUX on Nov 12, 2020

    "Let's have a joint venture so we can lose more money together!"

  • RustbeltPete RustbeltPete on Nov 12, 2020

    Here’s an idea for “mobility”: make affordable cars! Maybe it’s getting harder to sell new cars because they cost more than most people’s annual income?

  • ToolGuy ToolGuy on Nov 13, 2020

    Have you ever known two friends who you always thought might be perfect for each other, so you did some groundwork and then introduced them to each other? This is not that.

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