Percy_991

Remember back in 2008 when Porsche attempted to take a controlling stake in VW, said to be worth over $14 billion? After a power-struggle and the collapse of Porsche's complicated loan transaction structure, combined with the credit-crunch, Porsche's liquidity dried up enabling VW to swoop in and reverse the acquisition.

This got me thinking, with mergers and acquisitions becoming increasingly common in the global markets, is it just a matter of time before BMW is acquired by another marque or competitor?

So 3 question I have for your good selves in this poll:

[1] Do you think BMW will be acquired by another marque?
[2] Do you want BMW to remain an independent brand?
[3] Do you think BMW will acquire another major marque within the next 5 years?

Hopefully, this will initiate some interesting opinions.

swajames

Perfectly possible, but unlikely. BMW was almost taken over once by Mercedes before the Quandt family took their stake. Much like Ford, much of BMW is family owned and only some is publicly traded meaning no deal happens unless the Quandt family wants out, something that's looking very unlikely.

I don't see BMW acquring another brand, they are already in every segment (including some they ought not to be in) as it stands. It's also interesting how BMW positions itself as an independent brand, it's no more indepedent than any other major manufacturer that answers to a board and to stockholders.

Not that it matters, but the Porsche/VW deal was always going to happen in one way or another due to the family ties but it wasn't simply the credit crunch that impacted Porsche's (otherwise absolutely brilliant) strategy. There are state laws in Lower Saxony (the so-called VW Law) that gave the state, which was a 20.1% shareholder, the ability to block the deal despite having only a minority interest. The EU Courts struck down the VW Law but it keeps coming back in slightly altered form. Finally - Porsche isn't yet a VW subsidiary, but will be this year and the two companies have operated as one since the VW investment was made.

lummer535i

+1

I don't believe that the family wants to sell or give up control just to secure lower costs. However, the long term challenge facing Mercedes and BMW will be how to maintain their premium over Audi's development and production cost advantage. Reminds me of how the imports leveraged their cost advantage to attack the US market in the 80's. They made everything standard for the same price. Not sure if Audi will go there but VW and Audi have put their old quality issues behind them and present a formidable competitor.

The ownership of the brands is not as important as the seperation and management of their identities. Just ask GM what happens when the bean counters take over from the car guys.

Percy_991

Very robust and interesting response 'Lummer535i'.

I agree, although the family may not want to give up control this may become a necessity rather than a choice within the next decade. With a greater emphasis on greener technology and fuel systems, will BMW have to consider collaboration with other marques to reduce R&D costs, tap into economies of scale and bring technologies and systems to market quicker than its competitors; especially when the VW umbrella keeps on expanding?

ron_cb550

Not THIS thread again!

Percy_991

Haaa. I asked the same question to the F10 chaps and was keen to contrast responses with those given by the E60 chaps. So far it seems there is much less interest / feedback from the F10 owners than E60 owners!

Ricracing

BMW Ag (BMW, Mini and Rolls-Royce) is doing so good, that I don't belive nothing such will happen in the near future.

But never say ever. Chrysler will soon be Italian FIAT owned, and GM-part owned Saab will soon go bankruptcy if not the Russian mafia money will be accepted by GM and the EU.

And it was not a long time ago that the GM was Government Motors.