BMW guards go-it-alone strategy with electric cars

Bayerische Motoren Werke AG is accelerating a shift to battery-powered vehicles, developing lightweight carbon parts and slashing spending as it guards against a wave of consolidation in the auto industry.

The moves are part of a go-it-alone strategy by the Munich- based manufacturer that flies in the face of recent link-ups among carmakers. Porsche SE is merging with Volkswagen AG, while Daimler AG, Renault SA and Nissan Motor Co. last month announced a share swap to cement closer ties. Fiat SpA last year bought a stake in Chrysler Group LLC.

Chief Executive Officer Norbert Reithofer's stance has pleased investors, with the shares gaining 58 percent in the last year, and he's been supported in his moves by the Quandt family, the carmaker's dominant shareholders. His challenge will be to maintain the momentum as rivals become bigger and spend more on research and development, analysts said.

"While they've been extremely good at what they do, what could hold them back is their size," said Stephen Pope, chief global equity strategist at Cantor Fitzgerald in London, who recommends buying the shares. "They may struggle strategically without a partner."

The Quandts, a German industrial family which owns 46 percent of the carmaker, have for decades fought to keep BMW independent. Herbert Quandt, who inherited a 30 percent stake in BMW from his father, helped block a takeover offer from Daimler in 1959. Stefan Quandt and Susanne Klatten, two of Herbert's children, sit on BMW's supervisory board.