Daimler AG and BMW partnering up, exchanging shares

Muamer Hodzic March 9, 2009

German magazine ‘Der Spiegel’ is reporting that the Daimler AG and BMW Group are looking to partner up and combine their purchasing power to save millions. While this is not the first time we’ve seen these arch rivals come together and discuss partnering up, as they have done last year to develop engines and axles together, it still a bit surprising.

What is even more surprising is the move to buy each others stocks, which would lead to an even tighter co-operation that would certainly decrease the “feud” and increase cost savings and possibly even parts/technology sharing. This will certainly anger many fans, but most importantly stock and stakeholders. In this economic climate, it is probably the best time for such a move, not only to save money and decrease the risk of layoffs and downsizing, but to strengthen each other and compete better against the other emerging luxury brands.