BMW denies merger talks

BMW YESTERDAY denied it had held merger talks with any rival car makers or that it was under pressure from its controlling shareholders, the Qandt family, to seek an alliance. There have been reports linking BMW to a possible merger with its German counterpart Volkswagen or Fiat of Italy.

The denial came as fresh speculation emerged in the United States about a possible link-up between Ford and the Swedish car maker Volvo. A Volvo spokesman confirmed that it was discussing the possibility of co-operation with a number of car makers but declined to go into details. Meanwhile BMW said it would take a decision in the next four to five months on a pounds 1bn investment in a replacement for the Rover 200-400 series, which is due to be built at Longbridge in Birmingham