A plausible alliance regarding engine development and other strategic areas is being discussed between the German automobile giant BMW and South Korean car maker Hyundai Motors. Hyundai, with its capability to come up with the TAU series, and BMW, with the best diesel engine in the world, can together come up with innovative technologies. If sources are to be believed, both the giants are in the early stage of discussion regarding this partnership.
On the condition of anonymity, an insider revealed that both the companies are discussing an extensive partnership that involves designing a new engine and splitting the cost of production equally. If it happens, the outcome will be ground breaking and beneficial for the auto industry. “BMW and Hyundai have their eyes set on expending billion of dollars on this project,” claimed Automobil Produktion, a German automotive newsletter. The total amount is expected to be between 1.3 and 2.6 billion dollars.
Officials of BMW recently had a meeting with senior managers of Hyundai, including Vice President Chung Eui-sun in Munich. However, as expected, all the company officials are in the state of denial. Norbert Reithofer, Chief Executive Officer (CEO), BMW, said that no plans are being devised at this point; on the other hand, Hyundai completely rejects the idea as well.
BMW's partnership with General Motors (GM) to develop a new hydrogen fuel-cell technology is on the anvil, but there have been no confirmations. However if it does turn out to be true any time soon, it will bring about a paradigm shift in the auto industry and mutually benefit the buyers as well as manufacturers. The German manufacturer has also joined hands with Toyota, Daimler and PSA/Peugeot-Citroen.
Referring to the 1990s acquisition of the loss-making British car maker Rover that almost threatened BMW's very existence, Stefan Bratzel, Director of the Centre of Automotive Management in Bergisch Gladbach, Germany, said, "Hyundai is one of the most agile and dangerous competitors in the global mass market car industry today. But any strategic alliance with the Koreans would be tantamount to an earthquake since the Rover disaster still haunts BMW."
There is a long history of strong and dependable engines behind BMW. Hyundai, with its TAU series, has driven home the point that it has great deal of imagination and creativity. The fact that the company has the potential to produce world class technologies has been reinforced by its V8 and V6 engines, along with the new 6 and 8 speed automatic transmissions.
Taking into consideration BMW's extensive knowledge of building world's best engines and Hyundai's imagination and creativity, a strategic alliance between both can evolve into a revolutionary product.
