BMW surprised as VW buys 8.2% stake in SGL Carbon, BMW’s carbon fiber partner.

Volkswagen announced at the 2011 Geneva Motor Show that they have bought an 8.2% stake in SGL Carbon. SGL Carbon is BMW’s partner in a new carbon-fiber venture. BMW had great plans with SGL in producing a huge amount of carbon fiber that they will be using for the future BMW vehicles. This partnership between SGL and BMW has been announced back in 2009.

Though Volkswagen announced that they do not intend to increase the SGL holding above 10%, this transaction came as a surprise to BMW. The BMW Group was surprised about this acquisition which might be a start of conflict between the two premium car manufacturers.

Norbert Reithofer, BMW CEO, said in Geneva that BMW was not aware of situation ahead of time. “VW did not tell us about it. We weren’t warned in advance,” he said.

The joint venture between BMW and SGL Group included also the plans to build a high-tech carbon fiber factory in Washington State and investment was said to be as much as 230 million euros. The plant will produce carbon fiber material which will be used for the upcoming BMW i electric cars. The first vehicle that will use this carbon fiber is the BMW Megacity Vehicle, set to launch in 2013.

Source: Automotive News