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Daimler and BMW are the latest to join forces as new technologies threaten to upend the car industry.
Via Graham Watson
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Rescooped by Bruce Fellowes from Microeconomics: IB Economics |
Scoop.it!
Via Graham Watson
The BBC looks at why the car industry has seen a rash of joint ventures: BMW and Daimler, Ford and VW, Honda and General Motors.
The answer is because all these firms are looking to mitigate risk in the sector - the future of the conventional car is highly uncertain, the costs of developing driverless cars high and the threat from car sharing growing. As a result, firms are looking to diversify and that sometimes involves merging with tech firms so as to spread risk.
We live in interesting times as far as this sector's concerned.