Tuesday, October 12, 2010

GM pursues partnership with BMW

After the recent partnership announcement between BMW and Saab, another automaker company is pursuing a strategic partnership with BMW. General Motor has recently came upfront with their plans of finding partners to develop technology and new products.

The rumor on the street is that GM is courting BMW for a possible joint venture. At the Paris Motor Show, General Motors were promoting the idea of being open to everyone for future collaborations. A source close to Automobilwoche, a German automotive magazine, mentions that some contact has been made between the companies in regards to possible BMW engines being used in GM cars.

This would not be first time GM has partnered with BMW. The X6 ActiveHybrid uses a two mode hybrid system developed by a consortium formed of BMW, GM, Daimler and Chrysler. Wall Street Journal reports that BMW will likely take a more active role this time with more BMW engineering making its way to GM products. Most likely this is a reference to BMW engines being used in some GM vehicles.

In recent months, BMW Group has already completed two similar contracts with the Swedish subsidiary Saab Spyker and the U.S. special vehicle manufacturer Carbon Motors. In both cases, the buyers and the BMW Group benefit from the partnership. BMW takes advantage of higher volumes sales, thus reducing production costs by moving larger quantities, while the partners benefit from the German craftsmanhip.
 
We will update you as we learn more.

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