Daimler CEO Dieter Zetsche wants Mercedes-Benz to have a closer relationship with BMW, but it doesn’t look as though BMW shares the same feelings. BMW CEO Norbert Reithofer recently voiced his concerns about the two German automakers forging too close of a bond.
Reithofer revealed BMW isn’t as enthusiastic about a strategic alliance as Daimler. BMW and Daimler have discussed joint-ventures for small cars and financial activities, but BMW’s CEO warns those move could dilute the brand’s image.
“There are clear limits,” Reithofer told Germany’s Frankfurter Allgemeine Zeitung. “The BMW brand, which one study has valued at $24 billion, must not be diluted or the brand identity damaged.”
However, Reithofer added BMW hasn’t ruled out partnerships with other automakers. BMW continues to have talks with Daimler and could soon expand its relationship with PSA/Peugeot-Citroen. BMW shares some of its engine technology — particularly for small cars — with PSA/Peugeot-Citroen.
