Report: BMW, Mercedes experiment with upscale car-sharing

by Zach Bowman (RSS feed) on Dec 29th 2010 at 6:39PM

If you think that joining in on the car-sharing party means that you'll be stuck behind the wheel of a low-buck auto, prepare to be amazed. According to AutoWeek, both BMW and Mercedes-Benz are diving into the car-sharing world with programs designed to allow users to experience a slice of luxury without having to foot the hassles associated with car ownership. BMW on Demand will provide drivers with a 1 Series for as little as €16 per hour in Europe (around $21 USD/hr). Those wanting a little more room can opt for a 5 Series for the low price of €23/hr ($30/hr), including servicing and cleaning.

Daimler, meanwhile, is working on a similar program in both Austin, Texas and Ulm, Germany, though that program will serve up products from the company's Smart line. Users can reserve trim levels and colors on line or by phone, use the vehicle for as long as they like and drop it off in convenient car-sharing parking spaces. The time behind the wheel is automatically calculated and the user's bank account automatically debited.

Both BMW and Mercedes-Benz are delving into car-sharing to confront a growing lack of interest in ownership from younger generations and increased traffic in urban settings, even though some research has shown that the use of a single shared vehicle can contribute to the loss of as many as nine to 15 personal cars.

link:

http://www.autoblog.com/2010/12/29/report-bmw-mercedes-experiment-with-upscale-car-sharing/

Um, why not just use Zipcar? Far more locations, and only $7/hour for a smart fortwo or $13/hour for a nice 3-series.

DAIMLER, BMW TEST THE WATERS OF CAR SHARING PROGRAMS

By Drew Johnson

New car sales at Mercedes-Benz and BMW may be booming, but the luxury automakers are hedging their with car sharing programs in Europe and the United States.

Luxury car makers are poised to post strong 2010 sales figures, but a shift among younger buyers has Mercedes parent Daimler and BMW experimenting with up-scale car rental programs. Daimler’s Car2go program is currently running in Austin, Texas and Ulm, Germany and BMW recently launched “BMW on Demand” in Germany.

BMW’s car sharing program is unique in that it lets renters choose specific vehicles and trim levels. Naturally the cost is based on the vehicle, with a 1-Series renting for $21.20 an hour and a 5-Series going for $30.49 per hour. BMW says it eventually plans to expand the BMW on Demand program to other European cities, but hasn’t announced a timetable.

Although car sharing programs could eat into new car sales – it is estimated that one rental car can take away up to 15 new car sales – the segment looks to be a growing part of the market. About 30,000 people have signed up for Daimler Car2go program and major cities like Paris are pushing for similar systems to help reduce overall congestion. Widespread car sharing programs may still be a few years out, but it appears the idea of a communal car is here to stay.

link:

http://www.leftlanenews.com/daimler-bmw-test-the-waters-of-car-sharing-programs.html