Frankfurt — German car makers Daimler and BMW have joined forces to expand their businesses in new services such as car-sharing and electric-vehicle (EV) charging, raising their full-year guidance to reflect the deal. Mercedes-owner Daimler and BMW, Germany’s two biggest luxury car makers, are preparing for a new era in mobility services where self-driving cars could allow them to expand into a business segment currently dominated by Uber in the US and Didi Chuxing in China. Under the terms of the deal, which includes car-sharing units Car2Go and DriveNow, as well as ride-hailing, parking and charging services, Daimler and BMW will each hold a 50% stake in a joint venture. Assuming that regulators approve the transaction, both companies expect their key profit figures — earnings before interest and tax (EBIT) for Daimler and pre-tax profit for BMW — to rise slightly year on year, compared with previous guidance for flat profit. Reuters

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now