Monday, 9 July 2007

BMW and Merc to join forces?

After years of battling for customers it looks like BMW and Mercedes might actually join forces to build there small cars.

BMW and Mercedes are already working together on a number of technologies - including hybrid engines and gearboxes - and it was thought that there were no set plans to expand this, but in an interview with Michael Ganal, BMW's sales and marketing head, he suggested that his company was looking at expanding cooperation with Mercedes, leading to speculation of a full-scale tie-in between the two German firms.

There is also a suggestion that Mercedes may work with BMW to produce the next-generation A-Class on the Mini car. Such a deal would make financial sense for BMW, which has to run the Oxford factory at full capacity to turn over a profit.

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