Currently reading: BMW and Merc to share engines?
Premium rivals in talks over future component sharing

BMW has confirmed that it is talking to rival car manufacturers about selling them engine and gearboxes.

BMW’s head of development, Klaus Draeger, told [i]Auto Motor und Sport[/i] that BMW is in advanced talks about the possibility of licencing its engines to Mercedes.

“We are ready in principle to sell our engines to a competitor. And yes, we are talking openly with Mercedes about several possibilities,” Draeger said.

One strong possibility is for BMW to supply Mercedes with a new V12 engine it plans to unveil next year for use in the 7-series and the new ‘baby’ Rolls-Royce saloon. Based on a stretched version of BMW’s new turbocharged 4.0-litre V8, it could be used by Mercedes in both the S-class and the Maybach.

But Draeger also admitted that Mercedes is not the only car maker interesting in striking a deal with BMW – the company is in talks with Aston Martin and is also ready to sell its diesel engine technology to a US car maker looking for a clean diesel powerplant.

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ericmorton 13 June 2017

Luxury Vehicle Engines

This would be a strong and effective project, BMW engines are basically known for its strong and effective performance and therefore, Mercedes is now doing a joint venture with BMW and share BMW engines, it might bring some good changes in the automobile world and also the users are getting better advantage from this. I wish this joint venture will develop the performance of the brands.
horseandcart 24 October 2008

Re: BMW and Merc to share engines?

I'm sorry, but some of you are running away with this story beyond what it actually is. If you wish to read the original report directly, rather than rely upon Autocar's report of it, see it here at Auto Motor Und Sport:

http://www.auto-motor-und-sport.de/news/wirtschaft_-_handel/hxcms_article_516418_13987.hbs

The main thrust of the information elicited by interviewing the BMW Development Director by AMS magazine is the continuing discussions by BMW and Daimler on the joint purchasing of parts, systems, whatever, which are not obviously brand identifiable. The subtext of this is BMW and Daimler need to counteract VW's 6 million+ a year purchasing contract muscle in order to competitively produce A/B classes and 1/3 series cars especially, not to mention Toyota's c.10m unit purchasing stength and even PSA and Renault's roughly 3m units each. Jointly, BMW and Daimler have no more than 2.5m units to offer to suppliers to lower economies of scale.

As to Mercedes throwing the towel in on engines, forget it. There's mention in the AMS report of joint use of BMW's 12 cyl. engine. That's it. Even this I doubt will happen. Daimler, realising the gravity of the economic collapse taking place, would not see a V12 engine option as particularly vital right now, even with Maybachs or top-end S class's. With oil and gold headed for 50+% and 30+% falls respectively even the billionaires of the Gulf States, Russia and China - by dint of no longer being able to flog piles of junk to bankrupt West - are all feeling the pinch and demand for plutocratic V12 limousines will drop like a stone. It's back to the pre-80s I'm afraid.

TheOmegaMan 24 October 2008

Re: BMW and Merc to share engines?

What is going on?

The best 2 or 3 engine makers, arguably BMW, Honda, Porsche, should just colloborate and make all engines, from little 4 cylinder ones to big V12s, for everyone else to use.

Then the same again with chassis.

Hopefully, all cars in any sector will end up being the same.