Daimler AG is one of a shrinking number of automakers that continues to build its own transmissions, but the parent of Mercedes-Benz is now looking to change that. The automaker has been holding talks with rival BMW about possible powertrain collaborations including transmissions. Mercedes already supplies the two-mode hybrid transmissions that BMW is installing in its forthcoming ActiveHybrid X6. However, a proposal to build a joint factory to produce automatic transmissions in the U.S. for the vehicles being built by both companies here has reportedly been scuttled.
Automotive News also reports that a second proposal to shift Daimler's European transmission operations to a new joint venture with BMW and ZF has also been abandoned. The two automakers had been discussing a jointly developed eight-speed automatic transmission but could not agree on technical details.
Mercedes is still looking for ways to offload its transmission operations, saying that it is not core to its business. This will be increasingly true if more of its vehicles switch to electrified powertrains where single speed reduction gears are all that is required. The two companies are still discussing collaborations on engines, however, including a new three-cylinder unit.
It's not just North America that is yielding an ugly red balance sheet for Chrysler. ChinaStakes.com reports that the automaker's position in China is in rough shape, too. Right before the taxpayer bailout of General Motors and Chrysler became official, Chrysler's Philip Murtaugh exited the company after just 15 months on the job, creating a leadership void in its Chinese operations. Murtaugh had joined Chrysler to lead its Asia/Pacific operations after 32 years at GM, the last ten of which were spent heading up the General's Chinese division, and a stint at China's SAIC.
The thinking was that Murtaugh would be the perfect man to establish successful relationships and footholds in China for the Pentastar, but things evidently haven't exactly worked out that way. At all. Chrysler is still without a joint-venture partner in China, and without such an agreement, production and distribution operations in the country are basically non-starters. Other business relationships the automaker has in China are described as being alternately "overcomplicated" and "inefficient", and recent negoatiations with companies like Great Wall haven't lead to anything. Chrysler's tiny sales footprint in China probably hasn't helped matters, either. Murtaugh's division reportedly had little juice with the home office as a result.
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Fiat and Tata already have a joint venture to distribute commercial vehicles. If they can do the big stuff, why not the little stuff? Tata and Fiat are looking at an agreement to sell the Tata Nano outside of India in markets where Fiat has a strong presence.
If the deal goes through, and once the car is upgraded to meet Western standards, Tata can take advantage of the Fiat name, marketing, and dealer network. Fiat would probably have a big seller on its hands -- and a slice of every one -- since the car is still expected to maintain a healthy price advantage even after it gets beefed up.
The Tata, however, is not expected to come to the U.S. as a Fiat. Ratan Tata said, ""We have held talks about the Nano being marketed in markets where Fiat has already a strong presence." Frankly, America isn't one of those places yet. With Tata making such a big splash over here with Jaguar, they probably wouldn't need Fiat to help the brand. Still, the thought of a Fiat 500 and a Nano snuggling in the corner of a dealership would be too cute to miss.
