BMW CEO Seeks Positive Long-term Relationships

BMW CEO Norbert Reithofer has been making strategic partnerships with other automobile manufacturers lately. This includes a Daimler partnership for sharing the development of a hybrid powertrain, Saab’s use of BMW engines in their future models, and a PSA partnership in hybrid powertrain components for front-wheel-drive vehicles. But even though it might seem that these partnerships are just done to reduce production costs, it is something more than that.

BMW CEO Norbert Reithofer considers BMW Group’s longevity and fit when it comes to advancing alliances. The BMW boss is comfortable making alliances even with their arch rivals.

According to Reithofer, “a cooperation agreement has to outlast my time as CEO. Only then can it be considered a good cooperation agreement.” He also sees that the parts sharing alliances with Daimler and PSA will create economies of scale that will result to a lot of savings for BMW. Letting Saab use their engines will ensure the full use of BMW factories and will also help generate more funds for BMW. Reithofer’s contract as CEO was extended until 2016. Until his term ends, he plans to make more positive long-term relationships for the benefit of the BMW Group.