A number of reports have recently emerged regarding BMW’s and Daimler’s cross ownership plan, with most of them released from the German-based Der Spiegel magazine. A couple of days ago, the magazine reported that both auto makers are planning to exchange of up to 7% of shares among each other, in an effort to combine purchasing power to reduce cost.
The latest piece of information to be released by the magazine is that the Quandt family, which is BMW’s single largest shareholder (of 46%) is against such a deal, fearing that Daimler which also owns the Mercedes Benz brand would end up taking over BMW all together, just like how it took over Chrysler in the late 90’s.
An executive from BMW then revealed that both auto makers only have an agreement to share purchasing costs for certain parts. BMW also has a similar agreement with PSA Peugeot Citroen, where the German auto maker develops the 1.6 liter petrol which is mostly found in the MINI, while the French automotive group helps reduce production costs with its high purchasing power. This deal has also resulted in Peugeot fitting similar engines found in the MINI in its 308 models. Recently, BMW is also rumored to co-develop platforms for small sized vehicles with Fiat.