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BMW, Daimler evaluating collaboration?

BMW, Daimler evaluating collaboration?

The arch enemies are looking to slash costs.

The decades-long rivalry between BMW and Daimler-owned Mercedes-Benz is one of the deepest in the automotive industry. And yet, a recent report claims the two companies are in the early stages of evaluating a collaboration in a bid to save money.

Sources familiar with the talks told Bloomberg the two firms could jointly develop vehicle platforms, batteries for electric cars, and autonomous technology. The negotiations are still at the embryonic stage so it's too early to tell which vehicles would share a platform, or whether the talks will lead to any kind of agreement.

Mercedes-Benz and BMW building cars on a common platform was unthinkable 30 years ago; imagine a W201-generation 190E built on the same bones as the E30-generation 3 Series. In 2018, the automotive landscape is much different. The need to invest billions into the development of electrified powertrains, autonomous technology, and cutting-edge connectivity features is driving companies towards unlikely partnerships.

BMW and Daimler have set aside their differences before. They enlisted the help of Audi to purchase digital mapping company HERE for about $2.9 billion in 2015. And, as Bloomberg points out, BMW and Daimler will soon combine their car-sharing programs. These are relatively minor projects, however. The proposed collaboration would deepen the ties between the two arch enemies.

Neither party has commented on the report or announced a potential collaboration.

Photo by Ronan Glon.