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

We first heard of the fifth generation SEAT Ibiza earlier this year, and last week, the company finally revealed the all-new Ibiza at the international launch in Barcelona. The new...
by - May 22, 2017
The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 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