It’s Over! Mercedes-Benz and BMW End Their Long Term Partnership
Mercedes-Benz AG and BMW Group have essentially given up the idea of what it meant to be in a long term partnership, which was meant to construct automated driving technology for the next-generation and not even a year after accounting their collaboration.
However, the almost power-couple both claim that the split was “mutual and amicable” and have each decided to focus on their current plans for development. Nevertheless, it appears that these two might plan on seeing other people soon, as the companies also asserted that collaboration may be started again at a later time.
The alliance was announced in July of last year and wasn’t ever supposed to be monogamous. Rather, it mirrored the growing trend with top manufacturers to form lax development agreements with the sole intent to share the capitally concentrated work of development, experimentation and validating automated driving technology.
Regardless, the German companies had some goals that were quite ambitious. The duo aimed to create driver assistance systems, highly automated driving on highways, and automated parking and launch those technologies in series vehicles set to be released for 2024.
Unfortunately, the probable virtues didn’t seem to outweigh the actuality of it all. Constructing a joint technology platform was becoming more a complicated and costly mission than previously perceived, according to statements from the companies. BMW and Mercedes-Benz AG also state that they were not able to hold extensive expert discussions and speak to suppliers about technological guidelines until the contract was signed in 2019.
“In these talks — and after extensive review — both sides concluded that, in view of the expense involved in creating a shared technology platform, as well as current business and economic conditions, the timing is not right for successful implementation of the cooperation,” the companies said.
BMW and Mercedes already have other pieces of work and partners. BMW, in particular, is in alliance with Intel, Mobileye, Fiat Chrysler Automobiles and Ansys. Meanwhile, Daimler (parent company of Mercedes) and Bosch released a robotaxi pilot project in San Jose last year.
On the other hand, both companies are still working together in other ways. For five years, BMW and Daimer allied with Audi AG to obtain a location and technology platform. The trio’s venture has since expanded and involves more companies.
Also last year, BMW Group and Daimler AG combined their mobility services under the coalition of the NOW family.
Independently, BMW said Friday (June,19) that it will do away with 6,000 jobs as per agreement with the German Works Council. The cuts, which were brought on by COVID-19 pandemic, will apparently be executed via early retirement, non-renewal of temporary contracts, ending redundant positions and not filling vacant positions, as reported by financial website, Marketwatch.
John Sisson Motors
Breaks ups aren’t always so bad, especially if you get to stay with the fun parent of the two, which of course is the fabulous Mercedes-Benz. John Sisson Motors has a wide range of Mercedes vehicles, each that speaks to various needs for individuals. Those who are interested in any of our iconic vehicles can simply view our online new car inventory and chat with a virtual representative for further assistance.