Mercedes-Benz weighs cooperation with luxury rival BMW

Mercedes-Benz and BMW face daunting technological and cost challenges from strict European emission standards coming into force, and it makes sense for them to look for ways to work together and share costs, Daimler AG CEO Dieter Zetsche said Sunday. Along with General Motors Corp. and Chrysler, Mercedes and BMW have already worked together on the development of a gas-electric hybrid system. There may be scope for Mercedes and BMW to cooperate in other areas, in technology or segments such as small cars, and transmissions and engines for small cars. "We hope there are areas where we can say, yes, that makes sense, let's go for it," Zetsche told reporters at the North American International Auto Show.