Daimler and BMW Get Cozy (Could a Merger Be Next)

If you want to see the plight of the ailing automotive industry at the Geneva Motor Show, just visit the stands of the US companies. Take Chrysler: The Detroit-based carmaker has even pinched pennies when it comes to the artificial waterfall that the company usually sets up at trade shows. Now the US brand is presenting its cars as if they were on a parking lot.

But it's another story altogether with the Germans.

Volkswagen (VOWG.DE) has hired pop star Pink to sing the praises of the new Polo. And Daimler's flagship brand Mercedes-Benz has illuminated its new E-Class with huge rows of floodlights. Daimler (DAI) CEO Dieter Zetsche regards the biggest competition as coming from inside Germany but even there he doesn't seem very worried. Munich-based competitor BMW (BMWG.DE) has replaced Mercedes-Benz as the best-selling brand—so what? BMW has "also toned things down," says Zetsche. What about Audi which is moving up in the rankings and selling an increasing number of luxury cars? "Puffing themselves up."

Daimler is Daimler, says Zetsche. If any brand can weather the crisis alone, it's Mercedes-Benz. After all, a car show is primarily just that: a big show and Zetsche is

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sectorsector - 3/11/2009 5:40:36 PM
-2 Boost
Haha, I'd love to see a merger... Quandts only own 46% so I guess they can't say $hit about it :)


WorldofLuxuryWorldofLuxury - 3/11/2009 8:49:28 PM
+3 Boost
That's what I'm afraid of.

Competition is never a bad thing.


WorldofLuxuryWorldofLuxury - 3/11/2009 8:50:47 PM
0 Boost
For customers, that is. America is built on holiday shopping with lots of "SALES," "SALES," "SALES"!!! :D


IamEvilHomerIamEvilHomer - 3/12/2009 12:01:16 AM
-1 Boost
if MB and BMW did this there would be someone else take their place

China is waiting to get into the international market or Hyndai EGAD!!


Yonder7Yonder7 - 3/11/2009 6:53:44 PM
+4 Boost
If that could happen, that will be very bad for us (the customeres).


weaponXweaponX - 3/11/2009 8:45:41 PM
+2 Boost
I'd love to be a fly on the wall when BMW and Mercedes engineers get together and try to design a car. It would be very interesting to see what type of car would result if they merge each segment together. You have the 7-series/S-Class, 5-series/E-Class, 3-series/C-Class, M/AMG...and so on. It's like saying what would a superhero look like if you mix Superman and the Hulk.


IamEvilHomerIamEvilHomer - 3/11/2009 11:57:46 PM
0 Boost
well if you had the luxury and innovation of MB and the Sporty ness of BMW I think they call that car company Audi


JRobUSCJRobUSC - 3/12/2009 12:25:36 PM
+1 Boost
"well if you had the luxury and innovation of MB and the Sporty ness of BMW I think they call that car company Audi"

... said the guy who works for an Audi dealer.


IamEvilHomerIamEvilHomer - 3/11/2009 11:58:46 PM
-1 Boost
yes that didn't work with MB's old merger


GermanNutGermanNut - 3/11/2009 11:25:01 PM
+1 Boost
When a competitor that you fail to recognize as such is backed by the 2nd largest automaker in the world and managed to increase its annual sales during the past year while your own sales fell and is rolling out new models that have received rave reviews (S4, R8, Q5) while redesigning its flagship to overthrow the establishment you have no choice but to team up with your archrival.


BillBill - 3/12/2009 12:25:59 PM
+3 Boost
BMW and Mercedes have never really been archrivals - that is something the press stirred up to create more competition between BMW and Mercedes products in reviews.

Traditionally BMW and Mercedes have coexisted peacefully together. They built cars for different customers and everybody knew it. Back in the 1960s, 1970s and 1980s, brands like Alfa Romeo or Opel built cars that were often compared to BMW products while the luxury sector saw competition between Mercedes, Jaguar, Lancia and Citroen for example. If you wanted a sporty car you went to BMW, not Mercedes. If you wanted something soft and comfortable and luxurious, Mercedes was your destination. It's that simple.

Although competition has increased in recent times, BMW and Mercedes still build the cars they used to build for their typical consumer, but with more modern twist and more features than ever.


0to600to60 - 3/12/2009 10:58:51 AM
+3 Boost
That would create a company with competing brands


WazzWazz - 3/12/2009 4:28:45 PM
+2 Boost
It can't all be bad, would be awesome if they made a car using BMW's driving dynamics and a Mercedes' engine (65 amg). I wonder what a Beemerc would look like?


CynicalCynical - 3/12/2009 7:49:48 PM
-1 Boost
Question - unrelated to the topic. Given the US dollar appreciation, does this mean that the prices on new vehicles will be tempered to any degree? Or are carmakers more likely to enforce price increases to a) keep the residual values of used cars intact; and b) make more profit per vehicle? As a car buyer (one who has not done so in 9 years) I've been amazed at what new cars are going for - a bmw 335i well equipped reaches $50k? Are you kidding me? I bought a GS300 (and I only bring this up because it is a higher mid-series class of premium-segment vehicle, not to incite any flame wars or anything of that nature) in 1998 for $44k!


JRobUSCJRobUSC - 3/12/2009 10:53:53 PM
+3 Boost
"I bought a GS300 (and I only bring this up because it is a higher mid-series class of premium-segment vehicle, not to incite any flame wars or anything of that nature) in 1998 for $44k!"

which is now what a nicely equipped IS350 costs. Inflation -- it's hardly a BMW-only phenomenon.


JordanskiJordanski - 3/13/2009 12:00:10 AM
+1 Boost
If BMW isn't careful, Benz is gonna axe-murder em.


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