Daimler and BMW are thinking to limit their planned cooperation to jointly produce an affordable electric car in China, according to German daily Sueddeutsche Zeitung.
Daimler and BMW refused to discuss.
Last month, news reports stated that BMW and Daimler are in discussion to cooperate in developing vehicle platforms for electric cars in a move that could save each automaker at least 7 billion euros ($7.85 billion).
Both companies have recognized cooperation talks, which include sharing engineering costs for driverless cars, but BMW and Daimler have repeatedly refused to discuss on whether their cooperation could consist of entire vehicle platforms.
According to Sueddeutsche Zeitung Daimler and BMW are now planning a joint electric car in the price range between 27,500 and 32,500 euros, a price segment that provides the opportunity to start up a mass market for electric cars.
It is still not clear whether the project will actually be carried out and the two companies will start a joint venture and share the capacity of a new plant in China, that could produce one million electric cars over a period of seven years, the paper stated.
The plan has been met with skepticism from some managers at BMW and Daimler, both of which also have cooperation strategies with local Chinese partners, the paper stated, noting that BMW is concerned that its brand could be diluted by a deal with Daimler.