How’s Mercedes doing without Chrysler? Who’s the next partner?

It’s finally a done deal. ‘DaimlerChrysler’ has renamed itself Dailmer AG and has renamed its passenger car business Mercedes-Benz Cars. So how are Daimler and Mercedes doing without their long time partner Chrysler?

According to The Detroit News, the separation is doing wonders for Daimler. The stock has gone up 50 percent since it announced that it would be selling Chrysler back in February. Mercedes is also out-earning its rivals BMW and Audi. But analysts and investors are now wondering who will Mercedes-Benz partner up with next to keep their spot as a strong competitor in the luxury segment?.

As R&D and development costs rise, investors are expecting Daimler to look for help closer to home. Rumors of a potential partnership between Daimler and BMW flourished after a Mercedes executive told a German magazine that a partnership with BMW could be a “true marriage made in heaven. Finally, we could cooperate with a company that is only two hours away from us, speaks the same language and has the same target customer.”

Those rumors were killed off by Daimler CEO, Dieter Zetsche, a week later. Even if the two don’t merge, many executives at Daimler have shown interest in sharing technology and R&D costs.

But many analysts say the GM would be a better partner since the two are already sharing technology to develop hybrid powertrains. Even though BMW is in on this relationship with GM and Daimler, analyst believe that GM and Daimler would make a better team than BMW and Daimler.

“They are logical partners — they’re close in size and technological ability,” says analyst Jürgen Pieper at Metzler Bank in Frankfurt.

Not to mention BMW’s CEO Norbert Reithofer said himself that BMW is not interested in partership with any auto maker. At a recent press conference, Reithofer said that BMW is more concerned with its goal to increase automobile retail to 1.8 million units by 2012.

As far as retail volume is concerned, we intend not only to remain the world”s leading premium provider in the automotive industry. By 2020, we want to lead all of the segments in which we are active,” said Reithofer.

He said that BMW main goal is to increase automobile retail to more than two million units by 2020. And we highly doubt it’s going to team up with Mercedes to get that done.


Source: The Detroit News

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