• Jun 11th 2007 at 9:28PM
  • 17
Right now luxury carmakers are doing booming business, and rivals BMW and Mercedes are faring better than ever. Both auto manufacturers produce in excess of one million vehicles annually, and profits are coming in by the fistful. At the same time, Audi is growing faster than both luxury stalwarts, and with 22 models coming in the next couple years, the gap may between No. 3 and the perennial Big 2 German luxury autoamakers may shrink even faster. One reason for Audi's pace is that the folks from Ingolstadt can pool engineering and parts resources with VW, Porsche, and even Lamborghini, giving the luxury maker flexibility to produce more products using less money.

A very competitive market is pushing Mercedes and BMW to work together to find those same synergies, and plenty exist. BMW sales and marketing chief Michael Ganal points out that both companies are premium car makers with a lot of money vested in high tech, and combining resources on some projects will help both companies ultimately remain independent. The two are already working with GM and Chrysler on hybrid powertrains, for instance. Automotive News reports that Ganal didn't go into details concerning any partnerships, but we're hoping they do work together to find a new supplier for their unintuitive navigation systems.

[Source: Automotive News -sub. required]

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    • 1 Second Ago
      • 8 Years Ago
      God I hope they don't merge. Don't mess with BMW! Mercedes is great for heritage and snoody factor. BMW is the best damn handling car, ever.

      • 8 Years Ago
      Now that Mercedes is free, it will crush BMW once and for all, AHAHAHAHAHAHAH!, oh...
      • 8 Years Ago
      I hardly think they'll merge. Probably more along the lines of sharing some systems (xdrive/4matic maybe? diesel?) and maybe even some manufacturing capacity in one place or another (for example, the factory that BMW is leaving in Eastern Europe, used to make the Mini. I forget which city exactly).

      Synergy only works if they actually work together, rather than telling the other to do better (coughDaimlerChryslercough). Hopefully they can make it work.
      • 8 Years Ago
      BMWs are definitely up there in terms of safety. With BMWs superior handling and driving dynamics, accident avoidance is your first line of defense -- and a damn good one too. Drive one before you talk.
      • 8 Years Ago
      I love all the people who rip on iDrive - bunch of freaking morons. Five bucks says most of them didn't spend even five minutes trying to use the system. It's not a big deal and it takes very little effort to figure it out.

      Would I get iDrive on my next bimmer? No but that's mostly because I don't see the point. I don't use navi, so iDrive doesn't really offer me anything I can't get from standard controls. Regardless, it's not difficult to use; most car reviewers that blast it do so for one of two reasons: they're jumping on the bandwagon or they're legitimately confused by a very simple interface.
      • 8 Years Ago
      Actually its square 1 million as they don't have Chrysler's $20 liabilites hanging around their necks.
      • 8 Years Ago
      Correct me if I'm wrong, but didn't the two companies come quite close to merging post-WWII? So this wouldn't be the first time they have thrown around the idea of working with one another. That doesn't necessarily mean a merger nowadays, though, because BMW is an "independent company of ideas."
      • 8 Years Ago
      For me, BWM is still the best. Besides from its good feature, it is the safest car to drive.

      BMW Lover...
      • 8 Years Ago
      I agree, it won't be a merger, more of a sharing of costs and production capacity. Maybe the two of them together can finally turn a profit on smart.
        • 8 Years Ago
        "Unintuitive navigation systems"....I think you are being way too kind with that statement.
      • 8 Years Ago
      I see a lot of people making wrong assumptions and statements very much biased.

      Like Jenny.

      Jenny, you're wrong.

      Stuart made a good observation, maybe try reading that before you reply.
      PETER M.
      • 8 Years Ago
      • 8 Years Ago
      Hilarious. Mercedes blew $38B on not sharing parts with Chrysler, and now it is going to share parts with BMW.

      Freaking hilarious.
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