Kyle's Corner (FYI) it Happened to Mercedes and Now to BMW

It is remarkable how
the current automotive
environment is putting
pressure on automakers.
One misguided decision
and a company could go
out of business! For
auto CEOs, it is
challenging, tight,
and very competitive.

Even the power-
houses such as Toyota,
Mercedes and BMW

are feeling it. Consider that just a couple of years ago, it would be unthinkable for
Mercedes to join with another automaker. Recently, however, Mercedes joined with
Nissan and Renault to build future small cars. As the automotive and economic
landscape has changed, Mercedes suddenly is more like a 'regular player.'

So Mercedes has run for some cover. What about BMW, the maker
of the "Ultimate Driving Machine?" Well, the automaker is also
doing some scrambling as it will be offering some front-wheel drive
cars. Additionally, the company that has been known for its straight in-
line six engines might adopt some V engines.

BMW's chairman Norbert Reithofer informed Car saying, "There
will be front-wheel drive BMWs in the smaller vehicle classes in the
future." The 1-Series will likely be offered as a front-wheel and also
as a rear wheel drive. The front-wheel and all-wheel drive versions
are likely to arrive in 2013.

The front-wheel drive 1-Series will be combined with the Mini (BMW
owns Mini) and BMW will likely work with Peugeot (similar to how
Mercedes will work with Nissan and Renault).

Reithofer did admit that BMW explored working with Peugeot and
having the next Mini on a Peugeot platform. However, BMW felt that
the chassis did not have the necessary characteristics. Therefore, BMW
will keep the chassis development in house.

PSA (Peugeot) will likely join forces with BMW on the development
of 3-cylinder engines and dual-clutch gearboxes.
.
Like Mercedes, BMW most likely would prefer to be totally indepen-
dent. However, when the going gets tough, the tough get going. And
like Mercedes, BMW is going forward with others.

Have an auto question or comment? You can email it to me at
Kbusch3@verizon.net. Kyle Busch is the author of "Drive the Best
for the Price..." www.DriveTheBestBook.com.