Despite some disagreements over CO2 rules, European companies haven't abandoned plans to work together. How far those plans will get, though, appears to hinge more on setting aside traditional rivalries than justifying the economic benefits. At the center of the talks is BMW, which is talking to Mercedes-Benz as well as Fiat and already has an R&D partnership with PSA/Peugeot-Citroen. The question is just how far the talks will go.
While BMW has already partnered with French carmaker PSA/Peugeot-Citroen, U.K.-based Car magazine reports that BMW would prefer to keep development on its small turbocharged four-cylinder engines in-house for now. Mercedes would appear to be especially interested in these units, considering its current four-cylinder engine is too large (and expensive) to shoehorn into its smaller cars, so the company is hoping to get its hands the 1.6L to 2.0L units to spruce up the A- and B-classes, as well as fill an entry level roll in the C-, E- and GLK-classes. To sweeten the deal, Mercedes has a brand new all-aluminum, twin-turbo, direct-injection V-12 -- an engine that both Rolls-Royce and Maybach could use. A partnership between the two German luxury carmakers could spread the costs of continued development of both the little four-cylinders and the big V-12 across both companies, reducing the cost for both. Word is that BMW chairman Norbert Reithofer and Daimler head Dieter Zetsche want to collaborate, but the long-standing corporate climate may be too strong for even these two giants to cut through.
Stiff competition from the Volkswagen Auto Group is putting the squeeze on both BMW and Mercedes, and a partnership could help both fight back. Further, collaboration between Munich and Stuttgart could mean the sharing of hybrid technology, dual-clutch and automatic transmissions, driver aids and other advanced vehicle technology that both are working on. However, before any collaboration can happen, the two arch-rivals have to get over years of competition and mutual dislike. Still, it may be their only chance at competing with the ever-growing VW Group.
At the same time, BMW is also in talks with Fiat, with similar goals in mind. Fiat needs a rear-wheel-drive platform for its future upscale Alfa Romeo models. The company has been talking to both BMW and Jaguar about possible platform sharing. With BMW, though, Fiat would share its small engines, and the Mini Cooper, Fiat Grande Punto and Alfa Romeo Mi.To could end up being built on the same platform, saving both companies money.
For now, all of these talks are up in the air, but a decision is supposed to be announced some time this fall. Whether it will result in a new inter-German alliance, a German-Italian partnership or nothing at all depends on whether these companies can set aside their rivalries and work together.
Source: Car Magazine