Strategic Alliance

Daimler and BMW work together in the development of hybrides.
Just a month ago Daimler's CEO, Dieter Zetsche, said in an interview that he would like to have a closer relationship with BMW. Norbeit Reithofer, BMW's CEO, has a different opinion about that. He doesn't want to a too close bond.

BMW and Daimler have discussed joint-ventures for small cars and financial activities, but BMW’s CEO warns those move could dilute the brand’s image.
Accoding to the Frankfurter Allgemeine Zeitung, he said "There are clear limits.The BMW brand, which one study has valued at $24 billion, must not be diluted or the brand identity damaged.”

However, Reithofer hasn't ruled out any alliances with other car manufacturers. BMW and Daimler will continue to talk about a possibility and soon BMW could engane in a partnership with PSA/Peugeot-Citroen due to the sharing in engine technologies.