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by Matt Brogan

BMW shares have risen 2 percent today following speculation on possible closer cooperation between the Bavarian manufacturer and Daimler.

It has been reported that BMW and Mercedes-Benz are stepping up plans to share research and manufacturing as they seek new ways to cut costs during the economic downturn.

“According to our calculations, a cooperation in purchasing, r&d and financial services could generate annual cost savings of up to 3 billion euros ($5.85 billion AUD) or 1.10 euros per Daimler share and 1.60 euros per BMW share,” Commerzbank analyst Daniel Schwarz said. “We believe that BMW is the more efficient company with regard to purchasing compared to (Daimler’s) Mercedes.”

BMW and Daimler have been in talks for years on pooling resources saying all cooperation was conceivable – provided it was not noticeable to customers or detrimental to the two unique brands.

But such moves have been obstructed by engineers at both ends who oppose joining the two arch-rival’s technologies. Growing pressure to reduce costs may yet overcome this opposition.




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