Rivals BMW and Mercedes-Benz Collaborate To Save Money On Seats

Michael C. July 28, 2010

The latest company camaraderie between BMW AG and Daimler AG has surfaced. Based on the news, both companies are gearing up to save money in order to collaborate and come up with the ultimate cash saving plan, which is seat frame sharing. The two competing companies have publicized that they will collaborate on a deal that would pave way to the production of the same seat frames for some of the production BMW and Mercedes-Benz models. Their mother companies have stated that this is part of the numerous partnerships and sharing of production materials BMW and Mercedes-Benz will be going through in the future.

According to the latest report of the German magazine, Der Spiegel, both companies are putting up millions of euros for future projects, which according to them, could save up to 200 million euros ($288 million) a year. Though both the companies assert that the money saving plans will affect the consumers too, critics are doubtful if it will substantially lower the price of a new luxury Mercedes-Benz or BMW. But they are certain that it could bring down any sales price increases in the near future. BMW and Mercedes-Benz clients may be uncertain to share foundations with competing brands, but both companies have guaranteed that only the seat frames will be manufactured together. The trimming, internal cushioning and seat functions will be devised and manufactured separately.

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