BMW and Mercedes-Benz Shared Engine Possible

By Brendan Moore

12.03. 2007

The German auto enthusiast magazine auto motor und sport (yes, no caps) has quoted BMW’s finance chief, Michael Ganal, as saying that a joint cooperation agreement to develop engines between BMW and Mercedes-Benz could be announced before Christmas.

Apparently the success of the joint engine venture BMW has with Peugeot (MINI engine) spurred BMW’s appetite for more of the same kind of agreements, so why not one of the neighbors?

And as Ganal alluded to in the interview, the synergies fast-rising luxury competitor Audi gets from the huge parts bin that VW Group maintains vis-à-vis Bentley, Lamborghini, et al is something that provides a competitive advantage for Audi.

Ganal also told the magazine that a decision on introducing a fourth brand to the three existing brands of BMW, MINI, BMW and Rolls-Royce, has not been reached yet. But he did state emphatically that BMW did not want any cars in the BMW range under the 1-Series, so that leaves the open question of whether the proposed fourth brand would be under a 1-Series in price and performance.

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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1 Comment

  1. They already make great engines apart. What will an engine together be like?

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