BMW MERC Merger?

[GreenThree]

Today Fast lane daily was talking about the two German giants merging. I know the economy is rough, but these two rivals? What do you guys think?

[vAnt826]

Repost, theres already a thread.

[E90SLAM]

Isn't that some old news???
About sharing parts and stuff to keep production cost low???

[GreenThree]

Yea, I did a search but diddnt find anything. Just wanted to see what others thought about this

[ssabripo]

http://www.worldcarfans.com/9090309....ross-ownership

Daimler, BMW Plan Cross-Ownership

BMW and Daimler will both take a 7 percent stake in each other

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.

[ssabripo]

say hello to all automatic trannies

say goodbye to the BMW handling

[jeremyc74]

What they're thinking is "survival". The entire auto industry is in SERIOUS trouble right now. By the time the current downturn has ran its course, the landscape is going to look a hell of a lot different than it does right now, I promise you. Even strong, well managed companies can't withstand a prolonged decrease in sales like we're seeing right now, there's just too much fixed overhead that can't be easily trimmed as volumes drop.

The German companies are forming alliances to help offset costs.

[tbird]

This is weird to be sure.

I have chimed in quite a few times on MB's "Post Merger Blues", in which MB went from an unbelievably incredible car company to one of the worst carmakers on the planet. The C, E, and M are almost completely worthless. I wouldn't pay $500 for one, unless it was new and I could sell it to someone who doesnt' research their car purchase (you get what you deserve in life).

Even Jeremy Clarkson finally gave up his brave battle to keep MB in high rankings, when he FINALLY stated in a special segment on-air that MB was going to FINALLY address the numerous QC issues. Of their annual $3 billion profit, they were going to earmark $2Bill to quality issues. So, does Daimler have a chance to clean their mess up? Yes.

But with their cash tied up, will they try to buy out BMW, a company that has not suffered like the others, a company with continuing strong sales and a very loyal customer base? My "guess" is that Daimler is way too weak to do so.

[E90SLAM]

Originally Posted by ssabripo

say hello to all automatic trannies

say goodbye to the BMW handling

More like say hello to MB's Bling-bling!!!

[cadeucsb]

Its a 7% share swap, most likely to co develop certain technologies. Its not a merger of branding whatsoever. I will doubt that it goes through, but even if it did, nothing will change with either brand other than for example; they share a similar variation of a hybrid drive train or some other new technological platform. Its not as though everything BMW will be made in concert with MB.

Its a market hedge in the event one company does bad while the other does well, the company doing bad at least benefits from their 7% stake in the other.

Its not the BMWapocalypse people

[GreenThree]

If the deal goes through, I would like to see share ownership, and cooperative purchasing ONLY. Agree that there is not really a choice due to low sales for both companies. If the 3 ever became what the 300 is. That would be a true catastrophe!

[Crimson92]

Originally Posted by ssabripo

say hello to all automatic trannies

say goodbye to the BMW handling

thats like say all asians are yellow......

[E90SLAM]

Originally Posted by Crimson92

thats like say all asians are yellow......

i'm gonna send u an infraction....

[Crimson92]

Originally Posted by E90SLAM

i'm gonna send u an infraction....

simon...gtfo

im asian too

[JHZR2]

Originally Posted by ssabripo

say hello to all automatic trannies

say goodbye to the BMW handling

Based upon what??? MB offers MT cars most everywhere else besides the US.

Handling is another story... but even with apples to oranges car companies, some parts can be shared to induce cost efficiencies. How many different windshield wiper motors or light ballasts do wer really need to have?

[cagekicker]

i think i'm gonna be sick.

[lauer87]

Originally Posted by tbird

I have chimed in quite a few times on MB's "Post Merger Blues", in which MB went from an unbelievably incredible car company to one of the worst carmakers on the planet. The C, E, and M are almost completely worthless. I wouldn't pay $500 for one, unless it was new and I could sell it to someone who doesnt' research their car purchase (you get what you deserve in life).

Even Jeremy Clarkson finally gave up his brave battle to keep MB in high rankings, when he FINALLY stated in a special segment on-air that MB was going to FINALLY address the numerous QC issues. Of their annual $3 billion profit, they were going to earmark $2Bill to quality issues. So, does Daimler have a chance to clean their mess up? Yes.

I agree with you that MB has issues, which they seem to be addressing.

But you talk of quality control issues, and doing research on a car before you bought it. I assume your aware of the dreaded fuel pump issue affecting the BMW 3.0 turbo? Did you just choose to overlook this point?