While many reports have been harping on about a possible merger between premium segment rivals BMW and Mercedes-Benz, it now appears that smoke was all there was. Both companies announced this morning that they will not be entering into any agreement whatsoever. No fire here, let’s move on.
The smoke on the other hand, burns on the other side of the Atlantic where BMW is getting ready to swallow up General Motors’ Cadillac business. According to officials, the two companies have been locked in serious meetings over the past two days discussing the future of Cadillac. It’s understood that BMW will pay off all the US brand’s debt (estimated at over US$1 billion) in exchange for full equity. Cadillacs will then be rebadged as BMWs in markets like Mexico, the US and Canada.
The future of SAAB, the other beleaguered sporty GM brand, is still not known although Hyundai of South Korea had expressed interest. A South African group led by respected business tycoon and car enthusiast Lolly Jackson is also in the running to buy SAAB Automotive.
With BMW working hard on its small 2.2-litre petrol turbo engine Cadillac will benefit as well. Any April fool can see that emissions are becoming quite the important thing in the automotive world and big daddy Caddy will be keen to get rid of its gas-guzzling engines like the 4.6-litre V8 and 3.6-litre V6. BMW has solutions for both in the new 4.4-litre twin turbo and 3.0-litre twin turbo. Cars like the CTS will share a new 1.6-litre turbo (115kW) with models such as the upcoming 716i.
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