• Sep 8, 2007

The idea of a co-developed engine between the two German heavyweights is an interesting idea, especially if both manufactures begin to focus their efforts on some form of innovative propulsion. More turbos? New fuels? Pixie-dust power? Who knows?

[Source: Automotive News – Sub. Req.]

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    • 1 Second Ago
      • 7 Years Ago
      I want to see Mercedes do a joint venture with Ferrari.

      That way it wouldn't always be exotic Italian cars that simply spontaneous combust on the side of the road for no reason.
      • 7 Years Ago
      If MB & BMW collaborate on engine tech, I suspect it will be a defensive move just in case the EU Commission decides to impose fleet average CO2 emissions limits per manufacturer.

      That would force these premium manufacturers to produce a lot more subcompacts, which require a completely different cost structure to be profitable. Joint engine development and production is one way to cut costs. BMW already has an engine JV with Peugeot, but perhaps it feels that the French got the better end of that particular deal.

      The resulting products of any Daimler AG/BMW AG collaboration would then presumably be branded as smart and Mini, respectively. This would tarnish their premium image, but at least avoid diluting the differentiation of the core brands.

      Indeed, it would then even make sense for smart and Mini to operate a shared core platform and assembly line, as Fiat and Ford Europe are doing in Poland for the 500 and new Ka, respectively. The European Toyota Aygo, Peugeot 107 and Citroen C1 also all roll off the same production line in Slovakia.

      Speculation regarding a Daimler/BMW cooperation becomes moot if the EU's CO2 limits are applied to the umbrella associations ACEA, JAMA and KAMA or, if they are watered down to allow higher emissions for heavier cars.
        • 7 Years Ago
        Your probably closer to the real facts then anyone. The emissions requirements are the biggest hurdle for any car maker. Few are willing to tackle it alone. These engines will have to be more advanced then anything available now. NA standards are different enough and those car makers are isolated by geography. BMW seems to be the hesitant partner but may change their attitude.
      • 7 Years Ago
      Some of the best vehicles I`ve owned have been Chryslers

      The 1970`s was a long time ago. Our domestic brands still can`t live it down.

      Chrysler was the bread winner for Diamler just a few years back.

      BMW should steer clear of these guys!
      • 7 Years Ago
      Daimler is at least looking at a car maker that can build a decent car. BMW & Daimler engines may even sell well on their own.The Chrysler deal was nothing more then a financial burden to them.
        • 7 Years Ago
        Your wrong Eddie and I can only surmise you are very young or so old, you lost your memory. Throughout Chrysler's history they have struggled to stay alive. Canadain and American governments have aided them several times. The fact they repaid their depts don't make them a thriving company. The merger between Chrysler and Daimler was to be benefical to both parties. Daimler (Mercedes Benz) was to have a domestic car in the US. Chrysler was to finaly get a qualification of quality. Daimler discovered that Chrysler has a small footprint in North America and buyers still didn't acquaint Chyrsler as a quality car maker. Daimler paid to rid it'self of the car maker and still left holding 20% of the stock.
        Perhaps Chrysler will do better alone but they aren't are they? Mitsibishi may not be big but has products that are considered reliable. That's to the benefit of Chyrsler and not a benefit of Chrysler. Again the partnership is not equal.
      • 7 Years Ago
      @ Drewboy -

      People forget that Mercedes spent a lot of money stabilizing Chrysler after they bought it. In the process, the core Mercedes brand itself began to suffer from lack of management attention, on top of the perennial losses at smart.

      After ousting Schrempp, Zetsche was elevated to the CEO position. Unfortunately, Wolfgang Berhard, who was slated to take on Mercedes, rubbed too many of the old guard the wrong way and Zetsche had to let him go. That left him with too few top-notch managers to deal with Mercedes, Chrysler, smart and the old guard all at the same time. In the process, Chrysler was starved of the additional resources required to capitalize on its turnaround with a new product line. In particular, the old guard absolutely did not want to dilute the Mercedes brand equity.

      So yes, Zetsche did mismanage the Chrysler side of the business. But his mistake was not that he "sucked Chrysler dry", rather he was not assertive enough to promote Berhard to the top job there (instead of at MB) despite objections by the old guard. LaSorda is a nice man and he knows a lot about manufacturing, but he was the wrong man to entrust with the development of a brand-new line of models.

      In the end, Mercedes had to pay Cerberus money to rid itself of 80% of Chrysler. The press releases glossed over this humiliating fact, you had to read the fine print to find out.
      • 7 Years Ago
      Mercedes doesn't have the reputation it had before screwing up Chrysler as well as its own service record.

      Sure, Mercedes is good, but so are many other cars that are safe, drive well, are as durable, and cost half as much.

      Between MB and BMW, I think BMW is a better choice.
      • 7 Years Ago
      Their reputation will hopefully improve without the albatross hanging from their neck. The stupid move will be a black mark untill Daimler proves they won't do something like that again. Taking on a company like Chrysler was a poor business venture. They could have sunk because of that company. It cost a fortune to get rid of it and they still will be burdened with 20% of it. Hopefull Chrysler will survive long enough to retrieve the 20% and allow Daimler to shake loose.