BMW and Mercedes to Merge?

March 11, 2009 · Posted in BMW, Information About, Mercedes Benz, Strange News 

BMW Z8

During the first couple of years following the stock market crash of 1929 the makers of luxury cars continued producing costly, elegant models, often with custom bodies. But it wasn't long before the wealthy were caught up in the depression. Famous names fell like trees in a hurricane. By the end of the decade only Cadillac, Lincoln, and Packard survived among American luxury marques. History may be about to repeat itself in astonishing ways for there is talk – serious talk – of co-operation between Mercedes-Benz and BMW that could even lead to a merger or buy-out. Not surprisingly the mysterious and reclusive Quandts family is resisting any takeover by Mercedes but if sales continue to fall they may have to think differently.

Following WW2 the Russians acquired what was left of BMW's car parts factories in East Germany. A fresh start was made in the West by former BMW executives, beginning with motorcycles, followed by a license to produce the Italian-designed Isetta. New sports cars and sedans failed to produce much-needed profits until, in 1959, BMW was on the brink of being sold to Mercedes. The Quandts family, who owned some 46% of BMW stock, objected and the deal was never consumated. Today it is the Quandts who are again said to be resisting. Having supported the marque for decades (while reaping huge fortunes from their stock), one can hardly blame them. No doubt there's a strong emotional pull, as well.

Both companies were extremely successful in the years leading up to the current recession/depression. Both built expensive (and pointless) SUVs to add to the profits. Both are famous for sedans and sports cars that carry the German banner of quality cars built for people who love to drive. It's impossible to conceive that Mercedes or BMW might be sacrificed in a new world of automobiles where luxury gives way to economy and battery power. Yet survival may indeed depend on a marriage of convenience. I wouldn't bet on it but anything's possible in a revolution. And believe me, friends, we're in the midst of the most dramatic automotive revolution in history.


Comments

2 Responses to “BMW and Mercedes to Merge?”

  1. neon tabela on August 25th, 2009 9:14 am

    /the content of your website is very good greetings and so on. thank you nice sharing. ….

  2. Car News and Reviews on October 23rd, 2009 3:19 pm

    BMW will never fall my friend. They have many new products scheduled and they are leaders in fuel efficiency. Hydrogen and battery powered cars are just a piece of cake for the two giants. I see more and more BMWs everywhere, so their sales can not be down.

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