BMW-Daimler cooperation for future projects

Published on: 27-Mar-2019
Category: Trading
Last updated: 27-Mar-2019

BMW-Daimler cooperation for future projects

BMW and Daimler are considering building cars together for autonomous driving in order to reduce costs and face competition from Silicon Valley.

Although the two companies have been rivals for years, they are currently talking about cooperation. The most important topic of these discussions is cooperation in autonomous driving. This should reduce costs in the development of operating systems and production costs billions of euros.

Both companies have their best years behind them and need a good plan for the future. Sales are stagnating, profits are falling and costs are rising, and share prices are still on the decline. This is also clear to BMW boss Harald Krüger and Daimler's development board and future Daimler boss Ola Källenius. The two companies could do the same as VW and Ford and cooperate in the field of driverless driving and electromobility. BMW and Daimler therefore also want to work together in other areas, such as the procurement of components or battery cell production.

But there are also opposing voices that cling to the rivalry of the two companies or fear antitrust consequences. However, at least on the subject of autonomous driving cooperation will be essential to remain competitive against competitors from the United States. BMW has allied with Intel and its subsidiary Mobileye and Mercedes has partnered with Bosch. Both want to develop a car until 2021 that dominates autonomous driving and at least certain routes can do without a driver.

However, these initial projects are not enough to compete with the car broker Uber and Waymo. Waymo was founded as a subsidiary of Google's parent Alphabet and wants to make its software the global operating system of the auto industry. Unlike in the US, Uber and Waymo have not yet established themselves as the leading platform operators in Europe, which is why BMW and Daimler want to take their chance here.

Daimler and BMW made the beginning together with Audi in 2015, when they bought the map provider Here, whose data can match that of Google. At the end of 2018, BMW and Mercedes merged their car-sharing projects "DriveNow" and "Car2go" to confront Uber and other car broker in Europe.

However, discussions about cooperation are still in their infancy, which is why a successful deal will take some time. But do not wait too long as Waymo continues to exploit his lead.



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