BMW, Daimler: Cross Ownership news **7% Reported (page 1)**
03-09-2009, 01:59 PM
#1
Three Wheelin'
Thread Starter
BMW, Daimler: Cross Ownership news **7% Reported (page 1)**
The battle to survive the global credit crunch is about to bring age-old German competitors Daimler and BMW together in a cross-ownership deal, German news magazine Der Spiegel has reported.
Daimler and BMW have been discussing a parts and component sharing deal since last year and it seems that, to cement the deal, the two are also considering taking a significant shareholding in each other.
Questioned about the proposed BMW/Daimler technical co-operation last week at the Geneva show, BMW technical director Klaus Draeger said that BMW was “always looking for savings and efficiencies”.
Both companies are facing an unprecedented downturn in sales. They both suffered 24 per cent drops in production in February.
Together with VW, there is already an informal technical co-operation between BMW and Daimler that ensures basic components are built to similar specs to keep costs down for the German supply industry.
That agreement is now poised to go much further. One source is quoted as saying: “We will get closer through this deal, perhaps more will come.”
Major projects are being discussed, including developing a common front-drive platform to underpin the next Mini and A and B-classes, plus front-drive powertrains.
A cross-shareholding of seven per cent in each company was the figure quoted in Der Spiegel, although both BMW and Daimler refuse to discuss details.
According to the German magazine, the plan is facing opposition from the Quandt family, which owns 46 per cent of BMW.
Their concern is that Daimler might use the cross-shareholding as a foothold to launch a full takeover of BMW, in the same way Daimler turned its ‘merger’ with Chrysler into complete ownership.
Daimler and BMW have been discussing a parts and component sharing deal since last year and it seems that, to cement the deal, the two are also considering taking a significant shareholding in each other.
Questioned about the proposed BMW/Daimler technical co-operation last week at the Geneva show, BMW technical director Klaus Draeger said that BMW was “always looking for savings and efficiencies”.
Both companies are facing an unprecedented downturn in sales. They both suffered 24 per cent drops in production in February.
Together with VW, there is already an informal technical co-operation between BMW and Daimler that ensures basic components are built to similar specs to keep costs down for the German supply industry.
That agreement is now poised to go much further. One source is quoted as saying: “We will get closer through this deal, perhaps more will come.”
Major projects are being discussed, including developing a common front-drive platform to underpin the next Mini and A and B-classes, plus front-drive powertrains.
A cross-shareholding of seven per cent in each company was the figure quoted in Der Spiegel, although both BMW and Daimler refuse to discuss details.
According to the German magazine, the plan is facing opposition from the Quandt family, which owns 46 per cent of BMW.
Their concern is that Daimler might use the cross-shareholding as a foothold to launch a full takeover of BMW, in the same way Daimler turned its ‘merger’ with Chrysler into complete ownership.
03-09-2009, 02:19 PM
#2
Senior Moderator
BMW, Daimler to swap 7 percent stakes to foster cooperation
Let's clarify this as the title to the speculation is very misleading. There is no "merge" per se...
From Leftlanenews...
From Leftlanenews...
Though they might be decades-old rivals, BMW and Daimler, the parent company of Mercedes-Benz, are apparently seriously considering a share swap aimed at increasing cooperation between the two automakers. Each automaker would swap a 7 percent stake, even though the family long associated with BMW ownership has raised objections.
German magazine Der Spiegel wrote on its website that the Quandt family, which owns 46 percent of BMW, is concerned that the cross-ownership could lead to a takeover effort by Daimler. The Quandt family has the Daimler-Chrysler “merger of equals” on its mind, the magazine said.
Germany’s government has apparently been approached regarding the share swap, which could be overruled on antitrust grounds.
BMW and Daimler have been looking to cooperate on future component-purchasing agreements, a plan that could save the automakers, as well as their suppliers, a good deal of money.
German magazine Der Spiegel wrote on its website that the Quandt family, which owns 46 percent of BMW, is concerned that the cross-ownership could lead to a takeover effort by Daimler. The Quandt family has the Daimler-Chrysler “merger of equals” on its mind, the magazine said.
Germany’s government has apparently been approached regarding the share swap, which could be overruled on antitrust grounds.
BMW and Daimler have been looking to cooperate on future component-purchasing agreements, a plan that could save the automakers, as well as their suppliers, a good deal of money.
03-09-2009, 02:20 PM
#3
Senior Moderator
And more from WCF...
According to German magazine Der Spiegel, BMW and Daimler are working on a plan to swap shares in order to shore up their businesses during one of the most severe downturns the automotive industry has ever seen.
The deal calls for BMW to take a 7 percent stake in Daimler and for Daimler to also take the same share in BMW stock. The Quandt family, one of Germany's richest dynasties which owns 46 percent of BMW, are opposed to the deal but cannot stop it. The family fears that Daimler will attempt a takeover of BMW as they did previously with Chrysler after first calling the DaimlerChrysler deal a "merger of equals."
The two premium automakers, both hit hard by the current crisis in the industry, will also shortly announce a plan to cooperate on purchasing components, in a move that will save both companies hundred of millions of euros in the short-term.
Der Spiegel also reported that the German government has been informally approached and asked to look at whether there are any anti-trust issues with the deal.
The deal calls for BMW to take a 7 percent stake in Daimler and for Daimler to also take the same share in BMW stock. The Quandt family, one of Germany's richest dynasties which owns 46 percent of BMW, are opposed to the deal but cannot stop it. The family fears that Daimler will attempt a takeover of BMW as they did previously with Chrysler after first calling the DaimlerChrysler deal a "merger of equals."
The two premium automakers, both hit hard by the current crisis in the industry, will also shortly announce a plan to cooperate on purchasing components, in a move that will save both companies hundred of millions of euros in the short-term.
Der Spiegel also reported that the German government has been informally approached and asked to look at whether there are any anti-trust issues with the deal.
03-09-2009, 02:20 PM
#4
Senior Moderator
Title changed for accurary. 
03-09-2009, 07:31 PM
#6
6G TLX-S
Time to steal each other's auto technologies.
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