Andrjez Jeziorski/MUNICH
DAIMLER-BENZ is negotiating the sale of up to 51% of its MTU engine subsidiary to German rival BMW Rolls-Royce, and is hoping to use the merger as the core of a future European consortium including Snecma of France (Flight International, 31 May-8 June).
Sources at Daimler-Benz - which owns MTU's parent company Daimler-Benz Aerospace (DASA) - say that the idea has been unofficially broached at Government level, during meetings between senior political and industry figures.
"The long-term view is to form a strong European engine consortium which will be competitive with the USA: in other words, to involve Snecma," say the sources.
The French company says that it has not been involved in alliance discussions - such a move would complicate its partnership with General Electric for civil-aircraft engine business.
For now, the German companies are concentrating on their own merger negotiations based on the acquisition by BMW R-R of a stake of either 49% or 51% in MTU. DASA executives are reluctant to relinquish a majority stake, and difficulties could arise over the 49.5% holding which R-R has in BMW R-R, given MTU's close links with US manufacturer Pratt & Whitney.
The new alliance would be based around co-operation between the two German manufacturers on BMW R-R's BR700 family - spelling the end of MTU's involvement in the rival 65-105kN (14,600-23,400lb) mid-thrust family engine planned by P&W.
"We are looking now at the sort of technologies that MTU can bring to the partnership," says one executive. A decision on the partnership could be announced at the Paris air show later this month.
Neither company is prepared to comment, beyond saying that reports of an impending alliance are "speculation".
Source: Flight International
