Mercedes and BMW Could Team up to Develop Small Cars Together

Mercedes-Benz and BMW are in active discussions to work together in addition to develop the next generations of their compact cars – the Mercedes A-class and the BMW 1 series family – as part of a more extensive practice that will moreover comprise sharing technology for autonomous cars, according to a report published by a German newspaper.

The two automakers require reining in prices so they could pay for billions to invest in self-driving systems to avert falling back on their technological edge to newcomers such as Waymo as well as traditional rivals.

Sharing a compact-car architecture would necessitate the high development cost as well as is likely to involve the funding of a novel compact car architecture that can supposedly see the two automakers, Mercedes and BMW saving billions in research and development activities and also in investment costs, as per the report quoting insiders with knowledge of the negotiations.

The insider furthermore said that if the discussions go further, amid both car-makers, BMW and Mercedes, the first compact car is set to emerge of the new union would not appear before 2025. That date is likely to concur close to with the first appearance of the next-generation Mercedes A-Class.

Top management at Mercedes and BMW will be facing inflexible resistance to such an arrangement. Right now, as indicated by the papers, the most vocal resistance to the alliance on the two sides is from the vehicle producer’s own engineers.

Aiding the alliance to build up a compact hatch is BMW’s choice to change into the front-wheel drive for the next-gen 1 Series. The 1 Series is a five-entryway hatchback, which is a model from the second gen F20 territory. The original first generation 1 Series initially showed up in Australia during the year 2004 as well as the present model during the year 2011.

As of recently, BMW and Mercedes collaboration have been restricted, collaborating in the year 2015 to share mapping technology. 

Daimler the parent company of Mercedes and BMW already collaborate in a few areas. In the year 2015, the two auto makers, in concert with Audi, purchased Nokia’s mapping organization as well as a year ago the two automakers combined their short-term rental services of Mercedes Car2Go and BMW’s DriveNow in a bid to make to a bigger level of existence in the emerging mobility market.

Sudip Saha

Sudip Saha is one of the leading tech consultants in APAC, having served at key positions in leading IT consulting firms. He has extensively written about the commercial viability and impact of next-generation technologies, most notably AI, IoT, and Big Data. Sudip’s forte lies in offering a nuanced analysis on the key developments in the tech landscape. A reputed thought-leader, his views have been published in leading publications, including CIO, ZD Net, Economic Times, and The Economist