In what seems like a move out of desperation may just be the start to an alliance focused on keeping out new entrants from entering the automotive industry. With the recent success of US based tech startups such as Tesla and Fisker Karma, century old automotive giants have taken note and begun to take measure to ensure they are not replaced without warning. In comes Daimler and BMW, two of the largest and oldest European automotive manufacturers, in talks to produce their entry level vehicles on the same platform.

Mercedes-Benz and BMW have been fighting head on for the lead in the luxury market in terms of sales, technology, and quality of build. Within the last couple years Mercedes has taken the top spot in the market with top sales in the luxury segment and arguably the most aerodynamically advanced vehicles in the automotive market. That being said, cost cutting opportunities are still at the forefront of every automaker’s to do list including Mercedes, since tech startups have the advantages of venture funded capital and low overhead costs at their disposal. The first break of a Mercedes BMW joint venture is the announcement of a cosponsored program focused on growing digital mobility services to directly challenge companies such as Waymo. The true objective of a BMW Mercedes partnership? To dominate the autonomous fleet market in Europe before the competition does. As a first mover the first automotive manufacturer to successfully implement autonomous driving will have the advantage of supplying what is arguably the very first industry to be born from automation, the automated taxi service industry. As consultants weigh in on the BMW Mercedes joint venture they highlight the face that Waymo and Uber have a strong market presence in the US already however Europe is still up for grabs as far as automated services go, and both BMW and Mercedes would rather work together than to see a third party take the spotlight.