BMW and Mercedes-Benz will invest 1,000 million euros (US $ 1,150 million) in the future of transport. The cooperation between the two Germans will be the form of five different companies, as reported this Friday in Berlin.
The collection of German motor equine resources includes autonomous cars, vehicles for walks, scooters electricity, car sharing and electric car-lift services.
The decision comes from a wide uncertainty in the car industry, with declining sales and a continuing commercial war that threatens to complicate the business on.
In this context, manufacturers are adopting new business models, as well as betting on disruptive technologies, such as automatic driving cars.
In order to do things worse, they know that the future of internal combustion engines has a closing date and no-one can continue to depend reliably which technology will replace it successfully.
In this sense, BMW and Daimler believe that, by combining their efforts in these projects, they can dominate where an owner has not confirmed. Also, they are clearly trying to distribute the risk, so that no company would be able to lose too much if the bets failed.
Dieter Zetsche and Harald Krüger on stage with new vertical CEOs:
"We combine our extensive knowledge to the benefits of both sides: Because, in a world where all the information is available in digital format, mobility itself becomes service. " #DaimlerxBMW #futureNow pic.twitter.com/XsJLNm5lCp
– Daimler AG (@Daimler) February 22, 2019
Rivals and friends
For decades, BMW and Daimler have been competing in the automotive sector, and they will continue, said CEO Daimler, Dieter Zetsche. "But time is changing," Zetsche added at a press conference in Berlin on Friday. "There are people who are not interested in car ownership, but in mobility. Individual mobility, on demand. And that's where both companies come to the conclusion that this is a field where we can be stronger with each other, than separately. "
"We have strengths that we want to take advantage of," he added. Harald Krüger, President of BMW. "We can combine our power and become a champion. This is the vision today."
Dieter Zetsche: "Every Vertical has a specific role to play in achieving the best long-term vision of full delivery electric and full #autonomous share fleets "@daimler #BMWGroup #Daimler #FutureNow pic.twitter.com/rubQVRJ0FO
– BMW Group (@BMWGroup) February 22, 2019
The companies announced their intention to join for the first time in March 2018, but the plan needed regulatory approval.
Other global automakers have worked together, including the latest Ford and Volkswagen league, which recently announced their intention to build trucks and trucks with each other.
The collaboration between BMW and Daimler will be in the form of five different companies:
- Arrival Now for multimodal services
- Pay Now for electric car loads
- Free for Uber style taxi services
- Park Now about parking services
- Share Now for a shared car service
Each company will have its CEO itself, and both automakers will act as shareholders who will broadly oversee the strategy, without interfere with the operations of companies.