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The recent European crisis has lead to a sudden shift towards partnerships in the automotive world. FIAT partnered with Chrysler, while General Motors partnered with Peugeot. The American automaker also has a partnership with SAIC (Shanghai Automotive Industry Corporation) and now the company is looking to partner with BMW. Yes, GM seems to be on a partnership streak and talks between both the companies have already commenced. BMW is looking at a partner in North America for obvious reasons.

What this partnership will lead to is joint development of products and platforms, which would result in huge cost savings for both the companies. Furthermore BMW and GM would also share technology, giving both an edge in various markets. Its hard to comprehend how an automaker which declared Chapter 11 bankruptcy almost four years ago, is today the world’s largest automaker. Obviously GM has done many right things to help it climb back the ladder to the top, such as partnering with SAIC, which has given it a huge boost in China.

If General Motors indeed ends up having a partnership with BMW, we could see high performance diesel engines in Chevrolet cars, while BMW could benefit from electric technology used in the Volt for its own line of vehicles. Currently BMW does manufacture Hybrid vehicles but could make do with electric powertrains for use in the 3-Series. BMW has been doing good numbers and recently released its earning statement, wherein the company did extremely well. Still considering partnership only means they are looking at long term survival and not just short term glory.

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