BMW and Daimler joined forces for a venture that will merge their current businesses like electric-car charging service, ride-hailing, parking and more. The giant German automakers are investing a total of $1.13 billion for this project.
The project will combine the former rivals' businesses. This means that Daimler's Car2Go car-sharing business will be added to BMW's Charge Now, Park Now and Drive Now and Share Now services. Then, the two companies will operate these companies, it will offer the ultimate services that are important to the consumers.
"These five services will merge ever more closely to form a single mobility service portfolio with an all-electric, self-driving fleet of vehicles that charge and park autonomously," BMW's CEO Harald Krueger said. "The cooperation is the perfect way for us to maximize our chances in a growing market while sharing the investments."
As per CNBC, BMW and Daimler's joint project was actually in the planning table since last spring and now, they are taking another step to realize the plans. It was added that with the project, 1,000 new jobs would be opened to the locals and this will gradually increase once the businesses are settled and running smoothly.
The luxury cars companies' plans were announced on Feb. 22 via a press conference held in Frankfurt. As noted by NBC 2, this unlikely partnership is an example of how well-established car manufacturers are cooperating to form a venture where they can "split the bill" and share the costs for technology advancements such as the electric vehicles and autonomous driving systems.
"Our mobility services have developed a strong customer base and we are now taking the next strategic step," CNN quoted Daimler's CEO Dieter Zetsche as saying. "Further cooperation with other providers, including stakes in startups and established players, is also a possible option."
With the new business venture, BMW and Daimler will each hold a 50% share. The two may also expand their business further and introduce more ventures separately. Currently, some of the things being considered by Daimler is a robot-taxi that will be released and expected to service passengers in San Jose, California. The automaker is collaborating with Bosch for this project.
On the other hand, BMW is in the process of creating its own self-driving electric car. In this business, the luxury-car company is teaming up with Intel and Fiat Chrysler.
Finally, each of the five businesses that will be operated by BMW and Daimler will have its own chief executive officer. The car companies will serve as their shareholders that will provide strategies for success but will not interfere in the area of business operations.
