Mexican Media Brands
BMW to Broaden Car-Sharing Venture
BMW AG says the car-sharing business it has been testing in four German cities for two years is ready to prove it can turn a profit.
#economics
Share
BMW AG says the car-sharing business it has been testing in four German cities for two years is ready to prove it can turn a profit.
The DriveNow GmbH partnership with rental car company Sixt AG allows customers rent vehicles by the minute. The venture tells Bloomberg News it will add only one more location in Germany and one elsewhere in Europe this year.
More important, says Managing Director Andreas Schaaf, is demonstrating the business case for the service. He notes there is little economy of scale when adding venues, so he's looking for profitability on a city-by-city basis.
Schaaf says DriveNow should break even in 2014. That's the same year Daimler AG's rival "car2go" service hopes to become profitable. Daimler said earlier this week that its one-way rental service, which features a fleet of two-passenger ForTwo city cars, already turns a profit in three of the 18 cities where it operates.
RELATED CONTENT
-
On Ford Maverick, Toyota Tundra Hybrid, and GM's Factory Footprint
GM is transforming its approach to the auto market—and its factories. Ford builds a small truck for the urban market. Toyota builds a full-size pickup and uses a hybrid instead of a diesel. And Faurecia thinks that hydrogen is where the industry is going.
-
Magna Advances Seating Configurations
Magna International is focusing on electrification, autonomy and smart mobility. This is taking the form of things ranging from an electrified system for rear axles (eDrive 1.0) to a collaborative arrangement with Lyft, which includes the co-development and manufacture of self-driving systems.
-
On The Jeep Grand Cherokee, 2022 Nissan Pathfinder, and More
An inside look at the Detroit Assembly Complex-Mack; a innovative approach to waste-free, two-tone painting; why a forging press is like an F1 car; and other automotive developments.
