Reuters is reporting that Fiat is in talks with Mercedes to create a possible alliance, like it did with other companies. Sergio Marchionne said on Thursday. “We have discussions open with auto companies.” He also said that the board might discuss alliances at its next meeting on Oct. 24, adding that he expected at least one alliance by the end of the year.
How beneficial are these alliances that Daimler is after, well they might be, as they are trying to find someone with expertise who will work with them on developing the A and B-class. Fiat is not the only candidate that they are looking at, they say that the biggest rival from Bavaria, as well as PSA Peugeot Citroen are being considered. We’ll see what develops out of this, but it will definitely be interesting to see who they pick.
Daimler Chrysler (as was) recently gave Fiat a huge order for diesel engines to be used in Mitsubishi trucks so obviously DC feels a lot more confident about the Italians. Shared tecnology, or shared cars? Fiat seems to have developed an edge in engine technology (it now has 1.4 petrol engies that produce 180bhp and multijet turbodiesel engines that are like high-performance petrol engines) so could it be a link like the one Fiat already has with PSA?
My immediate thoughts on the matter: how can Mercedes Benz choose to work with FIAT, the main sponsor for their arch enemy in F1, Ferrari who recently cost them $150 million and more.
Secondly, please fill me in if I’m missing something, but why would Mercedes Benz, the world’s most successful prestige brand, who apparently spend around a million Euro PER DAY on R&D need FIAT, BMW and especially the French to help them? And all this when the current A and B class are total sales victories. In short, can someone please explain why Benz think they need help in these areas? I’m at a loss.
Thirdly, IF they should take on a partner, I disagree with Henry Gibson that FIAT would be the best candidate because of their engine technology. Reason is firstly, Mercedes have brilliant engine technology in terms of bluetech and DiesOtto, and secondly, BMW make the best engines in the world – a statement I support by referring people to the many many engine of the year awards they have won and continue to win. They are simply the kings of auto engines. Another thing is, I think it would be good for both BMW and Mercedes Benz to work together. Keep it in Germany, and cultivate a friendly image towards one another. I think that will be healthy.