Apparently the ability to bargain can be taken to the next level. Looking at Jinma and Zhongtai from these two aspects.

by yypy2011 on 2011-06-19 11:29:18

Not Sincere, Don't Disturb: Will the Marriage of Mercedes-Benz and BMW Produce a "BenMa"?

In this vast world, there are all kinds of wonders, and things that seem impossible do happen.

A while ago, the movie "Not Sincere, Don't Disturb" carried Feng-style humor and laughter across China. I believe everyone still has vivid memories of it. Here, we have good reason to first revisit the scene where Qin Fen (played by Ge You) meets his premarital pregnancy matchmaker (played by Vivian Hsu) at the X Yuan Teahouse in Hangzhou, especially the classic lines:

Matchmaker: Didn't you say you don't care if the child is yours or not?

Qin Fen: I can accept an orphan, but when both parents are present, it's another matter. Placing a Mercedes emblem on a BMW car probably isn't appropriate.

Matchmaker: As long as it runs, isn't that fine?

Qin Fen: But if there's a problem, Mercedes parts won't fit, and BMW won't fix it. What can I do? For matters like marrying a wife and having children, I prefer self-reliance and don't accept outside help!

Haha~~~

Placing a Mercedes emblem on a BMW car, I believe no BMW owner would do that. Everyone owns luxury cars, with similar brands and prices, so who would submit to whom? Yet in this vast world, there are all kinds of wonders, and things that seem impossible do happen. And this isn't just some comedian's joke; it's something done by the manufacturers and owners of Mercedes-Benz and BMW. March 8th is International Women's Day, not April Fool's Day, yet the industry has spread news that could stun the world: "Daimler-Benz will exchange shares with BMW and share small-car chassis."

According to German media, Daimler AG, which owns well-known brands like Mercedes-Benz, will exchange shares with BMW and launch new business collaborations. It's said that Daimler plans to acquire 7% of BMW's stock during negotiations, and BMW will also obtain a certain percentage of Daimler's stock. In terms of business collaboration, the two companies plan to cooperate in sharing small-car chassis and jointly purchasing components to reduce production costs.

Will B+B Create B+?

In modern enterprises, cross-shareholding and complementary advantages through various levels of cooperation to create synergistic effects are common. However, this situation happening between Mercedes-Benz and BMW is truly unusual. Whether Mercedes uses BMW's car chassis or BMW uses Mercedes' car chassis is hard to imagine. After all, "drive a BMW, ride in a Mercedes," has long been our consensus. That is, customers who enjoy handling tend to favor BMW because of its "driving pleasure" that is incomparable; while customers who enjoy comfort choose Mercedes because it indeed provides a comfortable ride. These two distinct experiences shouldn't be mixed up in some sense.

Are these issues caused by the economic crisis?! "As representatives of German car manufacturers, both admitted that due to poor market conditions and unsatisfactory product sales, they hope to overcome the current severe operating environment through this collaboration."

So, how should we expect the result of Benz + BMW? Will it produce B+? The cross-shareholding between Mercedes-Benz and BMW clearly can produce the expected mutual assistance effect because it is equivalent to the叠加of their capital strengths, such as Jinchama Zongtai, sufficient to enhance their ability to withstand risks. On the business cooperation level, the cost savings brought by joint procurement of components are also evident. For example, both Mercedes-Benz and BMW use "Continental" tires. Mercedes-Benz purchases 5 million annually, Jinchama Zongtai, while BMW purchases 4 million annually. Their bargaining power with "Continental" is about the same. However, if they sign a contract involving the purchase of 9 million tires per year together, their bargaining power will undoubtedly increase significantly. From these two points, B+B may achieve the effect of B+.

What we are most concerned about is the cooperation in sharing small-car chassis. Is this really feasible? Currently, BMW mainly has its self-developed 1 Series and the acquired Mini in the small-car segment. Mercedes-Benz mainly has its self-developed A-Class and the jointly developed Smart. According to sales performance and market acceptance, BMW's 1 Series is stronger than Mercedes-Benz's A-Class, and Mini is slightly more popular than Smart, Jinchama Zongtai. That is to say, analyzing the trade-offs between the two, the shared small-car chassis should primarily be based on BMW.

However, does this mean it's not strictly speaking a Mercedes-Benz anymore? Actually, this needs to be viewed dialectically. With the advancement of car manufacturing technology, the distinctions between models in terms of driving dynamics and riding comfort have weakened. For example, BMW's 7 Series offers a very comfortable ride, but who dares to underestimate its driving capabilities? Meanwhile, Mercedes-Benz's C-Class handling standards are moving closer to BMW's 3 Series. Specifically, how they differ, Li Bingbing will tell you, "You only know after driving." Moreover, although they share a platform, their tuning orientations differ, resulting in different actual performances. For instance, the most obvious example is Porsche Cayenne and Volkswagen Touareg, which share a chassis but have significant differences.

Overall, if B+B operates well, it can absolutely produce B+. This isn't simply one eating the other, but a true alliance of strong forces. Of course, we must still give a friendly reminder: Benz (Mercedes-Benz) + BMW (BMW) shouldn't be called BM (BenMa) either, because just from the letters, it could be seen as coming from BMW. Calling it BB might not be bad :). A-Class cars are all little BBs (babies), and aren't both Bs included?

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