Daimler CEO Dieter Zetsche is keen for Mercedes-Benz form a closer alliance with rival company BMW. But the Stuttgart firm’s CEO Norbert Reithofer isn’t so sure…
By Gareth Dean
On the face of things, an alliance between two of the world’s most prominent luxury car manufacturers looks like a match made in heaven, and it would certainly be something that could strike fear into the hearts of such rivals as Lexus and Audi.
In a recent interview with , Zetsche expressed an interest in expanding the existing partnership between the two companies, which centres on parts procurement. He said that with regards to a Daimler-BMW partnership “few areas” would be off limits, but stopped short of expanding upon what those areas would be.
“It’s clear that we are two independent companies whose success in the market depends of the strength of our brands, so brand integrity is a cardinal imperative,” Zetsche continued. “This has to be considered at all times but it is not something that would prevent broad cooperation.”
Although Zetsche didn’t completely rule out the idea of the two companies sharing vehicle platforms in the future, he did state that such a move would only take place under the proviso that platforms earmarked for the Stuttgart firm would retain the inherent luxury characteristics for which the brand is renowned.
Although Daimler and BMW have worked together to develop their latest hybrid systems, and co-operation in the development of vehicle platforms would potentially save the both companies hundreds of millions of dollars, BMW CEO Norbert Reithofer has his concerns about the two German automakers forging too close of a bond.
Speaking with , Reithofer revealed BMW isn’t as enthusiastic about a strategic alliance as Daimler due to such a move potentially diluting the brand’s image.
“There are clear limits,” said Reithofer “The BMW brand, which one study has valued at $24 billion, must not be diluted or the brand identity damaged.”
Even so, it appears that Reithofer’s statements are more a case of the shrewd CEO keeping his cards close to his chest, rather than burning his bridges altogether. A dialogue between the two companies continues to take shape, while an expanded relationship with PSA Peugeot-Citroën, with who BMW has developed engines for such small cars as the Mini, is being discussed.
