QUOTE (ihpj @ Nov 21 2008, 08:01 PM)

It isn't collaboration it is out and out BMW supplying [diesel] engines to MB to use. Perhaps it has to do with the market circumstances or it is BMW being ahead of the curve making money out of licencing their technology (like IBM w/their PCs) where they cannot through their cars - and sorry, there is no way Merc. engines are 'better' than BMW engines. if they were, doubt Merc. would be using them!
...Ofcourse given the quality control issues Merc. have had with electrics and build quality of late - it is hardly surprising.
I don't want to go too far off topic on this, but not quite, the rumoured deal is supposed to bring together the items that neither manufacturer has. Mercedes wants BMWs small engines, and BMW in return wants Mercs stonking V12 to use in the 760 and Phantom. It's very much a collaboration to prevent neither company wasting money developing new engines when perfectly good ones already exist. I'm sure the diesels will also come into it, but it's not purely a deal of BMW supplying Mercedes.
In addition, I'm pretty sure BMW wouldn't give up all the technological gadgetry that makes their diesel engines so great, they'd merely give them the block so Mercedes still has to do the important bits themselves to truly "make" the engine - I'd be very surprised if BMW just gives them a ready to go engine that will just drop into their cars.
I didn't say Merc engines are better than BMW engines, I said BMW engines were more brittle. In any case, some Merc engines (AMG ones in particular) are fantastic, so it does go both ways a bit.