Let me start first by showing you an article published in Bloomberg two days ago:
German billionaire Stefan Quandt formed a Societas
Europaea holding company and may transfer his stake in Bayerische
Motoren Werke AG to the new concern, Financial Times Deutschland
reported, citing a spokesman.
Aqton SE is designed to help acquire and administer shares in companies
related to the auto industry, the newspaper said, citing the
unidentified spokesman for Quandt.
Still, there are no plans to transfer any of Stefan Quandt’s 17.4
percent stake in BMW to Aqton this year, the newspaper said, citing the
spokesman.
Quandt shifted almost 1.86 million shares in BMW to a holding company
called Stefan Quandt GmbH & Co. KG fuer Automobilwerte on Oct. 8,
according to statements issued by the carmaker a week late. |
This is a proactive move by BMW (more so it’s shareholders - the
Quandts) to ultimately protect itself from the recent Porsche
acquisition of a controlling stake in Volkswagen. In my mind, it makes
sense for BMW and Mercedes to group together their resources and brands
in a more-or-less unpredictable economy when you’re staring down a new
rival with the resources and sheer size of the VW/Porsche Group.
Consider that with the merger, that puts Porsche, VW, Bugatti,
Bentley, Audi, SEAT, Skoda, Lamborghini and a number of other smaller
companies under one umbrella, sharing resources, R&D and as such
reducing overall costs in all individual brands. This will permit the
VW/Porsche group to compete in practically every market niche in the
world with practically no other company rivaling them for both personal
and commercial vehicles.
That is unless BMW and Mercedes-Benz stop their eternal pissing
match and cooperate with each other. With a holdings group over both
BMW and Daimler you incorporate BMW, Mercedes-Benz, Daimler, a stake in
McLaren, MINI, Rolls Royce, Maybach, Smart, etc. into one group thus
allowing the Quandt holdings company to match or almost meet a
VW/Porsche challenge in individual vehicle niches.
Think of the possibility of the cost savings in just the Formula One
program alone if BMW and McLaren-Mercedes were to cooperate and share
technologies? It would reduce the $350 to $450 million spent in R&D
and team management expenses incurred while allowing the companies to
become more competitive against Ferrari or Renault. It would also allow
better structuring between brands like BMW and Mercedes-Benz or Rolls
Royce and Maybach. Thus maybe you’d see less direct model-to-model
competition or at least cost savings between line-ups.
My guess is the Quandts want, along with others highly vested in the
German and world car industry, to find a way to keep from VW eating up
the marketplace through volume and buying power. By forming an
automotive holdings group they can insure strength in numbers and face
competition head-on from one angle versus facing competition in
multiple. If the Quandt’s automotive holdings group does buy into
Daimler then Stefan Quandt has just become the new Ferdinand Piech of
the car industry. Piech is the man responsible for bringing Volkswagen
and Porsche back together after it was in split in a post-World War II
era.
Stand by for more updates, Horatiu is working on getting more information. |