BMW German putting efforts to have partnership agreement

In Berlin, BMW German announced that it will have partnership agreement with largest automobile producer. There are two goals behind this partnership agreement. Those are to respond the decreasing demand trend of new vehicle and to decrease the production cost. As 1^st year policy of this agreement is to exclude the capital investment in this partnership agreement. Also until now, both of companies has partnership agreement in hybrid system development, parts and distribution network. Lastly both companies believe that this joint partnership agreement will strengthen their position amid the financial crisis condition.

Comment:

During financial crisis period there are many joint agreements form among companies in any industries. Those are joint venture, merger & acquisition, strategic alliance and also partnership agreement. These agreements are being implemented to stabilize companies` financial condition. It is also being utilized to expand their market. And last but also crucial part is to have a sustainable competitive advantage over long-term run.