Report: BMW guarding its go-it-alone strategy with electric cars

Article by Christian A., on August 27, 2010

To protect itself against the car industry's preference for consolidation, BMW is speeding up its transition to battery-powered vehicles and has been developing lightweight carbon parts and cutting spending.

BMW is taking on this strategy to move away from the trend that other carmakers have embraced. For instance, Porsche SE is forming an alliance with Volkswagen AG; while Daimler AG, Renault SA and Nissan Motor Co. will be entering a share swap to have closer ties. 

Last year, Fiat SpA purchased a stake in Chrysler Group. Investors appear to have a liking for CEO Norbert Reithofer's position on the matter, as the shares have gained 58% in the last year.

The Quandt family, the dominant shareholders, is clearly on his side. What Reithofer considers as a challenge is to keep the momentum going as competitors grow and use up more money on research and development.

Stephen Pope, chief global equity strategist at Cantor Fitzgerald in London, said that BMW is "extremely good at what they do" but the company's size could be what would hold it back.

While he thinks that the company would suffer without a partner, Pope still recommends buying the shares. The Quandt family, which owns 46% of the carmaker, has been adamant on keeping BMW independent.

In 1959, Herbert Quandt, who inherited a 30% stake in BMW from his father, insisted on preventing a takeover offer from Daimler. Stefan Quandt and Susanne Klatten, two of Herbert's children, are members of BMW's supervisory board. 

Topics: bmw, electric car

If you liked the article, share on:

Comments

Recommended

Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Well, this is clearly not good news for everyone. Ever since the new BMW M4 CS rolled out in Shanghai last week, several reports about its limited production have quickly...
by - April 24, 2017
Honda will be displaying the electrically assisted CUV in their showrooms later this year. This has been confirmed in China at least. Fresh from its debut at the 2017 Shanghai...
by - April 24, 2017
Ferrari surprised everyone at the 2016 Paris Motor Show last month by unveiling five special liveries. There was plenty of excitement when they heard that these liveries will be up...
by - April 24, 2017
The BMW M model, as of today, offers their buyers two transmission options: either a six-speed manual or a seven speed dual-clutch automatic. But rumours have been circulating that these...
by - April 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries