Daimler on the rebound looking for a new partner

Dating on the rebound is rarely a good idea, and the soon to be former DaimlerChrysler appears set to prove it again. From a purely business standpoint, the marriage of Daimler Benz and Chrysler should have been a good thing. Both companies would have expanded their reach with relatively little product overlap to begin with. The killer was a culture clash between Americans and Germans that prevented them from playing nicely together.

Now that the split has happened, an anonymous Mercedes executive has talked up the idea of partnering with BMW to Auto Motor und Sport. BMW and Mercedes are already partnering on hybrid development as well as cooperating on diesel after-treatment systems. Partnerships that are limited in scope such as technology or purchasing make some sense but a full merger would probably be a really bad idea, since there is almost complete product overlap and competition between the two companies.

[Source: Automotive News - Sub. req'd]

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