Andrzej Jeziorski/MUNICH

DAIMLER-BENZ Aerospace's (DASA's) aero-engine subsidiary MTU Munchen has dampened speculation that it is to be merged with BMW Rolls-Royce.

Although the move has not been entirely ruled out, the company says that it is unlikely. Links will be tightened through parts-manufacturing contracts, says MTU.

Speculation over the future of MTU heightened in the wake of DASA's recent withdrawal of further financial support for Dutch subsidiary Fokker (Flight International, 31 January-6 February).

The torturous negotiations between the two German companies over an engine tie-up have been hampered by MTU's contractual commitments to strategic partner Pratt & Whitney.

BMW made an offer in the third quarter of 1995 to buy parts of MTU, but has yet to receive a formal answer.

Despite MTU's caution, BMW does not see this as an outright rejection of its purchase offer. "It looks as if MTU has no opportunity to act [on the offer], and so they are waiting. We are not really in a hurry," says BMW.

BMW R-R still hopes that MTU will manufacture the low-pressure turbine for its BR715. The two companies are already co-operating in engine-technology programmes funded by the German Government.

One major hurdle to co-operation has been removed with the apparent withdrawal of MTU from the joint programme with P&W to produce the PW6000. That engine, in the 65-105kN (15,000-24,000lb)-thrust class, is a direct rival for BMW R-R's BR700 family.

P&W adds that it will "...work to accommodate any change in the structure of the German industry", as long as MTU continues to fulfil its contractual obligations. MTU and P&W are co-operating in engine programmes such as the PW2000, PW4084, PW305 and PW306.

Source: Flight International