BMW, Hyundai to Join Forces to Produce new Powertrains?
The Auto world is on the verge to see an interesting JV between the German premium car maker BMW and Hyundai the South Korea's largest passenger car brand. The talks are out on the table but it is still an early to commit anything. Another source stated that the two companies had discussed a "comprehensive alliance," including jointly developing an engine and sharing development costs equally. He said he had no knowledge of whether the talks were still underway. As per word in the market, the two companies are mulling to form a broad ranging pact that encompasses the development of a powertrain whose production bill will be divided equally.
Reports are coming from Germany too that the BMW is exchanging words with Hyundai to helpmate 1-2 billion euros,the whooping production cost of assembling the new engine families. Also Chung Eui-sun, the apparent successor of Hyundai Motor Group chairman Chung Mong-koo is said to have a hush-hush meeting with the BMW hot shot managers. Although, officially the company is saying that the reports are baseless rumors. The market evangelist reacting on the ongoing rumors say that this JV will be beneficially to both the companies; BMW can achieve economies of scale whereas the passenger car maker Hyundai gets entrée to the advanced gasoline engine used in the large sized vehicles by BMW.
These days the pressure is built up on auto makers to roll out full efficient, Go-Green vehicles as the regulations are stringing day by day. BMW last year hit the top slot with 11.7% operating cost, closely followed by Hyundai along with its partner Kia Motors who grabbed the second spot with 10.4% functional margin. BMW Chief Executive,poured water on the rumor that BMW would extend its partnerships beyond Peugeot, Toyota, Daimler and possibly GM, should the present talks with the US automaker turn fertile. The apparent ventures that BMW is going to form is with Toyota and General Motors; Along with the American brand, BMW is going to work to produce futuristic machinery like fuel cells and this JV may seek help from the PSA Peugeot Citroen on gasoline powered engines. However with the Japanese auto major the company is going all green, the pact states that BMW will supply diesel engines to Toyota from 2014 in Europe and the duo will join forces for RD on lithium-ion battery for electric cars. BMW has broadcasted in March that the brand is working on brand new powertrain structural design that will help in improving the performance and mileage figures of three, four and six-cylinder petrol and diesel engines.