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BMW and Mercedes Collaborates in Making Small Cars

Two of the most famous car makers of Europe will be collaborating to make small cars according to the German auto magazine Auto Bild. The news said that BMW and Mercedes-Benz are now talking about a negotiation that will push through their plan to make subcompact vehicles.

This July, the two huge companies are anticipated to land on a decision whether they are building the new generation Mercedes A-Class which would come BMW’s Mini platform. The news was revealed by Auto Bild on their Friday edition without mentioning its sources.

The reason why BMW is looking for a potential partner in making their subcompact vehicle is because the plant they have in Oxford, England may already reach its full capacity. The heavy cost pressure can be the cause why MINI may run out of budget.

The Japanese auto maker Honda Motor Corporation which already has PSA as their partner could be included on the discussions. But BMW is considering their arch-rival Mercedes to be their partner.

Mercedes was actually planning to build the next A-Class this coming 2012 and the Chrysler group will be joining the German car maker to let this plan push through but because the DaimlerChrysler had a few cost-cutting problems, they had to drop the plans.

Michael Ganalm, the sales and marketing head of BMW, actually had a suggestion to expand the current cooperation between Mercedes as according to the news released on the interview by the WirtschaftsWoche, also a German magazine. Aside from that, they will also develop hybrid powertrain, Reuters added.

The German magazine also informs that the A-class is not profitable and too expensive enough to be reproduced. The source was not revealed by the WirtschaftsWoche.

Mercedes refused to give comments about this however, the M-B sales and marketing chief, Michael Ganal, was quoted saying that they want to cooperate with its rival BMW to share the benefits over the research as well as the development costs.

Both the A-class and its B-class car models are the only front-drive car models on the Mercedes line-up. They used to sport the ever famous M-B platform with a gorgeous interior and real time crash protection. However, with these features, the car models are not that expensive when it comes to production.

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