Filed under: Plants/Manufacturing, BMW, GM, Mercedes-Benz, FIAT
BMW still mulling selling engines to competitors
BMW has been kicking ass and taking names in luxury vehicle sales, and the Bavarian Motor mavens hold the top spot in global luxury sales as proof. Even though sales are more than brisk, top management wants to grow profits, and selling the German automaker's silky-smooth engines to its competitors may be part of the profitability plan. Back in February (and last May), news reports out of Germany said team Bimmer was looking for customers for its engines and transmissions, and now we have verification. Friedrich Eichiner, BMW's board member for corporate and brand development, told Automotive News that the company will decide by year end whether to sell its engines to the likes of General Motors, Daimler and Fiat. For a relatively small company, BMW has a ton of money invested in engine tech, with a full range of turbo-diesel, turbocharged and naturally aspirated petrol offerings. It makes sense for BMW to sell its engines and transmissions to pocket some extra coin, as what makes a BMW an Ultimate Driving Machine is much more than just what's driving it underhood.
[Source: Automotive News - subs. req'd]
Reader Comments (Page 1 of 2)
John R 8:14AM (4/03/2008)
Hm. Not so sure that this is a hot idea. Don't BMWs use GM transmissions? Why take it even further?
Reply
Dave 10:50PM (4/03/2008)
"as what makes a BMW an Ultimate Driving Machine is much more than just what's driving it underhood."
I don't know about this comment. You might think that, but definitely some other people might see it differently. How many times have you heard things like..."That Lexus is just a Toyota with leather?"...or "The Mini is just an overpriced retro hatchback with a Neon engine"?
Will some people make a similar connection and say "Why would I buy a bangle butt BMW when I can have the same engine in my stylish Saturn 325i?"
Andrew 8:25AM (4/03/2008)
They've contracted a few transmissions to GM, most are built by BMW.
Frylock350 9:32AM (4/03/2008)
If you think about it it almost makes sense. Jointly developed powertrain. BMW engine and GM trans, saves money for both sides.
why not the LS2LS7? 11:09AM (4/03/2008)
Andrews:
I don't think BMW makes any of their own transmissions. The ones not made by GM are made by ZF, Borg-Warner, etc. I think of all the German makes, only Mercedes makes any of their own automatic transmissions.
nagmashot 8:21AM (4/03/2008)
small company? BMW sells as much cars as Mazda or Kia and more as Subaru or Mitsubishi, nerver heard someone call them relative small
Reply
Andrew 8:26AM (4/03/2008)
My thoughts exactly. Considering they're one of the only auto groups in the green for sales lately, methinks the blog poster should stfu about small.
why not the LS2LS7? 11:14AM (4/03/2008)
If you looked at the updated auto family chart on here a week ago, it drives home that BMW is small (Honda too).
Of the 4 companies you mention, two only two are their own entities at all. Mazda is a subsidiary of Ford and Kia is owned by Hyundai. That makes them both marques, not makers.
Subaru 17% owned by Toyota effective this week.
Mitsubishi is indeed independent, but just because they're a smaller maker than BMW doesn't mean BMW isn't small.
Find your faves on the chart:
http://www.autoblog.com/photos/automotive-family-tree-2008/725147/
Throwback 8:24AM (4/03/2008)
I would like to see their new dual clutch transmission in the Vette.
Reply
Mr. Oak 11:05AM (4/03/2008)
Yep! There goes the "inexpensive supercar" and "best bang for the buck" monikers right out the window.
Here is my issue with "Precision German Engineering", on paper it's sexy as hell. Sells tons of cars. A few years down the road however, Precision German Engineering burns a very precise and rather large hole in your wallet.
Face it, an out of warranty German car can become quite an expensive misterss.
why not the LS2LS7? 11:16AM (4/03/2008)
If the VW GTI can have a dual-clutch gearbox, then the Vette can have one affordably (in up-front costs).
I agree about German cars cost a lot to keep running, but I'm not sure dual-clutch gearboxes affect it much. They're expensive to run without a dual-clutch box.
Argent 8:28AM (4/03/2008)
look up mitsu, subaru and kia -- they are either part of a massive industrial conglomerate (mitsubishi and fuji heavy) or part of another car groups offering (in kia's case hyundai, which is itself another massive industrial conglomerate.)
bmw, by comparison, is a privately held car maker and not much else. GM, daimler and fiat are severe heavyweights compared to BMW.
Reply
nagmashot 8:39AM (4/03/2008)
producing over 1.3million cars a year has nothing to do with small no matter if independent or part of a other comapny
why not the LS2LS7? 11:30AM (4/03/2008)
You seem really hung up for some reason. Do you work for BMW? Or perhaps are you just one of those people who owns a BMW and is completely hung up on them, somehow merging part of their identity with a company who doesn't even know you exist?
As if small were a terrible thing anyway. BMW seems to make most of their money convincing people that BMWs are somewhat exclusive anyway.
Toy Yoda 12:20AM (4/05/2008)
Actually, compared to Ruf, Alpina, Pagani, Panoz, Fisker, Tesla, etc, etc.. BMW is quite titanic.
By the way, BMW is not a privately held company. It is publicly traded. Look it up. It's BMW AG not BMW GmBH.
Mirko 8:55AM (4/03/2008)
There used to be a GM car with a BMW engine. The 2001 Omega 2.5 DTI had a BMW 2.5l I6 common-rail diesel engine - same as in the BMW 525d, just with a small horsepower cut.
Reply
Bill 9:08AM (4/03/2008)
How awful! The idea that the engine in my 5-er could be in the hands of a pleb makes my skin crawl.
Reply
mschaef 3:22PM (4/08/2008)
I'm wondering if this isn't the beginning of the end for the BMW inline 6. Honda changed the rotation direction of their inline 4 (with the K series) so that it'd be more compatible with the standard used by the rest of the industry. IIRC, the idea, at least partially, was that it'd be easier to sell their engines into other manufacturers.
Given the packaging issues with Inline 6's, and the rest of the industry's almost wholesale shift away from them, it seems like it would be much more difficult to sell an inline than a V.
FSM 9:20AM (4/03/2008)
funny, I always thought people that drove BMW's were the plebs
Frylock350 9:34AM (4/03/2008)
And that's the kind of elitism that makes people hate BMW fans. But seriously if you think a BMW is limited to its engine you clearly don't know the brand. BMW is about the package/experience. And if they can make some money by selling GM some diesels, why not?