Daimler, BMW Plan Cross-Ownership

BMW & Mercedes Logos Merged

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

By Alex Ricciuti
March 9, 2009 5:00 am
Filed Under: BMW, Corporate/Financial, German, Mercedes-Benz

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.

Source: Autonews

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Comments (page 1 of 2)

RedBaron

March 9, 2009 9:21 am

Interresting.they both have something to offer eachother.mercedes is luxury,bmw is sporty.audi watch out!

eltorch

March 9, 2009 9:32 am

lols Audi doesnt have to be scared, they have the entire volkswagen group behind their back.

boxster127

March 9, 2009 9:43 am

Not only the Volkswagen group but Porsche as well..

ghent2008

March 9, 2009 1:23 pm

Mercedes luxury? What luxury? An Audi Q5 has better interior than any Benz!!! MB screwed themselves up by making gas guzzlers like the CL. The only thing they have is great engineering like the Diesotto engine, not driving pleasure. That's why they are only woth $20 billion now!!!! i'd take the BMW 7 Series over the S Class anyday.

wjaprep

March 9, 2009 2:37 pm

Only $20 billion? Well let me just reach into my back pocket...

And I agree, with the luxuriouness(sp?) of a Mercedes and sporty dynamics of BMW... Audi shuld run.

MB_LINDON

March 9, 2009 3:17 pm

lets state the facts shall we, Mercedes-benz cars are built better and more durable than any other manufacuares, fact. merceds engines have there torque and hourse power come in way before any other engines on the market and for the horse power are more reliable, fact. mercedes benz has more satisfied consumers then any other company by ten fold, fact. and in class for class mercedes offers more luxuries and horse power for the money than any other company, fact.

scratchy996

March 9, 2009 6:55 pm

just out of pure curiosity, do you have a source for those facts, MB_LINDON ?

kooper

March 9, 2009 7:27 pm

I'm quite curious to know where the "facts" come from exactly, MB_LINDON.

Don't get me wrong, MB make some great cars. Their reliability was at one stage seriously questionable though, and they're still trailing somewhat in certain initial quality surveys. Their interiors still have gaps where you'd least expect them to be. Their engines are indeed very, very powerful, but that does not mean it's extremely efficient (don't confuse that with economical). Bang for the buck? There's no way. I don't know where you live, but in my neck of the woods, there's no better performance for your money than a Chev Lumina (imported Aus. Holden Commodore Ute).

Back to the article, I think it might be a good idea for BMW and Merc to team up in certain areas, so long as they don't merge or start talking takeovers.

Michael

March 9, 2009 9:26 am

Such a partnership could prove to be useful for both companies in these difficult times. But another good move for either (premium) company would be to buy a troubled car manufacturer such as Opel. And expand this way their lineup with popular cars, easier to be sold under the current circumstances than the premium ones. I think an Opel manufactured by Daimler or BMW could be a hit.

ghent2008

March 9, 2009 1:24 pm

You have no business sense at all! Why would I buy an Opel from BMW if I can buy a BMW from BMW, duh?

Michael

March 10, 2009 2:01 am

Ghent, you don't get it, do you? If you have money, you buy an BMW. But not everybody have money for a premium model. The crisis also requires lower cost models for a company to stay afloat. See the recent increase in sales of Dacia Logan (low-cost brand) in Germany. So not everybody could afford a premium car. Therefore, they (BMW or Daimler) could compensate their decline in premium sales (last year both Mercedes and BMW have at least a 4-5% decline, while Audi sales were 5% higher) selling a popular brand (Opel is only an example), more affordable these times. And an Opel under a BMW or Daimler ownership would be more succesful than a GM one. See the Audi-VW story and you would probably understand...

RedBaron

March 9, 2009 9:57 am

Who cares about vw or porsche?neither have anythm

scratchy996

March 9, 2009 6:57 pm

what's an Anythm ?

RedBaron

March 9, 2009 9:58 am

Battissmalan