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BMW-Mercedes alliance: the latest news

carE10 submitted on 10/08/2008 Official AutoSpies Timestamp: 9:44 AM
from: www.carmagazine.co.uk

[40] user comments | category: Misc News

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BMW-Mercedes alliance: the latest news

BMW and Mercedes are continuing to work on joint projects, CAR can reveal. The two premium brands reckon working together might just stave off the threat of the credit crunch, collapsing car sales in key markets and the uncertainty wobbling the very foundations of the motor industry.

But the BMW-Merc collaboration is proving difficult, according to executives in Germany contacted by CAR. Maybe it's a mutual case of 'not Invented here'. Maybe it's what decades of ingrained rivalry does to you. Or a mix of shortsightedness, ignorance and stubborness. Perhaps a combination of the above.

And if they can't finalise a deal, BMW is likely to hop into bed with a rival manufacturer. Talks with the Fiat group are at an advanced state, too (more of which later).

What BMW and Mercedes are working on

BMW and Merc are finding it very difficult to agree on even the smallest common denominators. Like engines – be it the new V12 or the new small petrol-fed four. A common V12 looked for a while like a done deal. And for good reason: both brands want it, Rolls-Royce and Maybach need it, and together they could easily afford it.

BMW chairman Norbert Reithofer is in favour of collaboration, while his counterpart at Daimler, Dieter Zetsche, has also given the thumbs-up. But both men cannot change the corporate culture overnight. And that corporate culture forbids sleeping with the enemy.

Why are they working together?

The reason BMW and Mercedes top brass want to work together is a homegrown rival: the increasingly threatening VW/Audi/Porsche powerhouse, which builds more V10, V12, W12 and W16 engines than the competition combined.

That's why M-B has thrown M295 into the ring, its brand-new direct-injection stratified-charge twin-turbo all-aluminium V12. But so far, to no avail. Read Article

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Kraut_god - 10/9/2008 12:49:57 PM

+1 Boost

poor krauts are getting desperate. maybe if they stepped up their engineering they wouldnt have to do this sort of thing.

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911gt2 - 10/8/2008 10:27:31 AM

+5 Boost

not really its just that vw group has a lot of brands that use V12s, so they can produce a v12 and sell it under 3 or 4 different brand names. Its just more cost efficient if BMW and MB co develop one.

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StarSearch - 10/8/2008 10:32:17 AM

-2 Boost

wow, another Axis of Evil!

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Speedoholic - 10/8/2008 10:51:49 AMView My AgentSpace

+3 Boost

Nice picture, BMW Sauber and McLaren-Mercedes :P
anyway this is going nowhere, two powerful and competitive brands can't team-up, cz each brand want to decide on its own without taking into consideration the other brand's opinion.

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1dott8 - 10/8/2008 1:21:18 PMView My AgentSpace

0 Boost

that's true.

B7FAN - 10/8/2008 11:35:10 AM

-2 Boost

this colaboration might help each company in the long run with Mercedes AMG engines and BMW M Handling I think together they can make a phenominal car

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Star - 10/8/2008 1:29:58 PM

+1 Boost

They ALREADY make phenomenal cars. That's the reason for which they are considered the best car brands in the world. I assume that if you pull your head out of Audi's a** you will be able to see that too.

B7FAN - 10/8/2008 4:21:30 PM

+3 Boost

Star...what are you talkin about no one is even talkin about audi you need to read before you right you Discombobulated A$$-hole.....hop off my mandingo and read what I wrote.

Star - 10/8/2008 1:37:49 PM

+1 Boost

"Mercedes needs BMWs help"

To do what ..take over the world? Their cars sell like hotcakes and they are doing better than ever. Mercedes is...Mercedes!!!
Lay of the powder...

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Star - 10/8/2008 2:49:35 PM

+3 Boost

I think YOU are the one who should read it again. Just because you are a BMW fanboi it doesn't mean everything in the world has to go around BMW. Both Mercedes and BMW are in the top but if it is to choose one winner that is Mercedes based on heritage alone. With that said Mercedes will NEVER be on second place if it is to team with any car brand in the world.

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1dott8 - 10/8/2008 5:00:40 PMView My AgentSpace

-1 Boost

-you mean to say why is maintenance included in the cost?

-you mean why did mercedes copy Audi's MMI look alike?

-in the numbers? are you kidding me? if that was the case then vw has the best cars. their resale value is number 1 in the industry plus, they sell way, way more cars than bmw so numbers have nothing to do with it. this was from an article we read on here about 2 weeks ago.

bmw makes great cars but come on dude they are not the best.

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Htay7500 - 10/8/2008 6:52:50 PM

+1 Boost

Free maintenance isn't a bad thing but it doesn't last forever. BMW has great cars to drives but fanboys like you are pushing it too far. You also have to realize BMW has their downsides, like other automakers.

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carE10 - 10/8/2008 8:13:55 PM

+1 Boost

and vw not the best either.

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1dott8 - 10/8/2008 8:19:08 PMView My AgentSpace

+1 Boost

carE10 - trust me, that is not what i'm trying to say. just proving a point. vw are nice but not my taste.

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1995e34 - 10/8/2008 4:23:58 PM

+1 Boost

maybe benz can bring back the i-6...

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E36er - 10/8/2008 4:50:03 PM

-2 Boost

This is a classic Northern Germany (Merc) vs Southern Germany (BMW) head butting. I will be very surprised if anything good comes out of this partnership. Merc may have the heritage but BMW has the engineering Merc's "Hyundai" line up isn't helping either.

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Star - 10/8/2008 5:07:02 PM

-1 Boost

Funny, I thought Hyundai compare themselves with BMW, not Mercedes.

uall - 10/8/2008 5:03:11 PM

0 Boost

Mercedes is also in southern Germany.
VW headquarters are in Lower Saxony (Niedersachsen), which is northern Germany.

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1dott8 - 10/8/2008 8:27:11 PMView My AgentSpace

+1 Boost

no piss pants, i told you once before that i drive 2 cars, an '04 A4 and an'08 650i. i'm just the guy who can tell the truth and understands the truth. now come on gay boy, put down the di**o and read a magazine you enthusiast impostor.

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Star - 10/8/2008 7:47:43 PM

+3 Boost

I am against an alliance between Mercedes and BMW because the rivalry between these two brands is what keeps the car industry going. Everybody else watches these two titans fighting for supremacy and tries without success to replicate their masterpieces.

We need them to compete with each other since their is no competition from anybody else. The Japanese car makers are so much behind that is embarrassing to even mention them in the same sentence. Shame on brands like Lexus or Infiniti for never raising their bar high enough to compete head to head with the Germans.

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StarSearch - 10/9/2008 4:17:58 PM

0 Boost

no, you're against an alliance between posting and common sense obviously.

Put down the pipe for once.

Type707 - 10/8/2008 7:50:06 PM

+2 Boost

BMW and Mercedes...what a dangerous combination

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S4cabriofoxone - 10/8/2008 8:50:27 PMView My AgentSpace

+1 Boost

"The reason BMW and Mercedes top brass want to work together is a homegrown rival: the increasingly threatening VW/Audi/Porsche powerhouse, which builds more V10, V12, W12 and W16 engines than the competition combined."

Eat it, amazinBimmer.

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sector - 10/8/2008 10:57:21 PM

-2 Boost

umm, Mercedes' quality is slowing coming back to what it once was, I don't think they should be doing the tango with the always unreliable BMW. Thumbs down :(

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QuantumMatrix - 10/9/2008 8:43:35 AM

+1 Boost

I guess that is why almost all of BMW's are recommended by Consumer Reports and that they have a Gigantic lead in reliability over MB.

Not one model of MB is recommended by Consumer Reports.

Get some facts douchebag before you open up your fat mouth and start spewing diarrhea...

StarSearch - 10/9/2008 4:19:40 PM

0 Boost

unlike you, who opens up their mouth and "stuff" spews in.

QuantumMatrix - 10/10/2008 6:59:18 PM

+1 Boost

Why don't you just respond using one profile name??

I know you get confused, but damn, at least make an effort to look like you graduated from pre-school.

Yonder7 - 10/8/2008 11:54:52 PM

+3 Boost

auto001: I agree with you. Beside that MB already have a heritage that BMW just dream. When you say luxury you thing MB over BMW right away, when you have to compare reliability , same history, BTW, V12 MB are so good that they have electronic governors for the torque. All others V12 can not be compared..For the Bimmerfans that likes the new M3 engine and claim that is better technology: I do not think so: is smaler than the 6.2 AMG however heavier than the AMG and weak. Suspension on the BMW good on the track but do not stand with the time, expensive and unreliable. BMW have more to win on this alliance. BMW is a wana be Merc (on Luxury)...If you can not afford a MB or a Phorsche, most of time you´ll buy an BMW or an Audi. Regarding the value of the brands: http://www.businessweek.com/magazine/toc/06_32/B399606globalbrands.htm

BMW beloww MB, second
The top ten automotive brands in order and value are as follows:
1) Toyota - $34b
2) Mercedes-Benz - $25.6b
3) BMW - $23.3b
4) Honda - $19.1b
5) Ford - $7.9b
6) Volkswagen - $7b
7) Audi - $5.4b
8) Hyundai - $4.8b
9) Porsche - $4.6b
10) Lexus - $3.6b
The reason because BMW sale more cars than MB is because is cheaper and they have less luxury cars (exclusive things are more expensive than the common). That´s Final, The only argument that bimmerfans have to beat that is to say that BMW do not overcharge for the cars, but that is not a commercial fact, You will charge as much as is posible for you product, but honestly They Can´t. MB can. Let supose that at this moment all MB and BMW have the same price, most of the people will pick MB. Bimmerfans, Do not take this personal , at the end is just my point of view, and do not get me wrong BMW are great, but an alliance like that won´t work unless they kick their egos outside the negotiations.

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MPowerDK - 10/9/2008 3:28:40 AM

+1 Boost

BMW is reliable, i have one E46 316i from 2004. I have only had oil changes on it, and used less than a USD 1000. No problems at all, so they make good cars. I know that here in Europe Audi and VW have had lot of problems, even Mercedes have that. All brands have cars that makes problem now and then.

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