Co. Such a pullback after seven years of growth could hasten the wave of mergers and acquisitions among automakers, particularly in the crowded European car sector, analysts say. Bernd Pischetsrieder, chairman of BMW, was among the first executives to issue a warning. Analysts generally agree with him, particularly over the expected downturn in the United States. Figures released Thursday show that the looming U.S. downturn already is playing a role in the proposed Daimler-Benz takeover of Chrysler. In a filing with U.S. regulators, the companies said that Daimler's pretax earnings would more than triple, overtaking Chrysler's within two years.
Analysts attribute the discrepancy to the conditions in the respective home markets.
Other automakers are expected to expedite negotiations on mergers and alliances in an industry struggling with overcapacity. In the past week, such leading German industrialists as Mr. Pischetsrieder and Ferdinand Piech, the chief executive of Volkswagen, have talked out loud about a merger. The flurry of speculation regarding possible merger configurations reminded one Frankfurt analyst of ''international chess.'' Chrysler's chairman, Bob Eaton, recently said he knew of at least six other sets of merger negotiations within the world auto industry. The French carmakers Renault and Peugeot-Citroen have been mentioned by matchmakers. Since both are national industry champions, talk of strategic partners for either raises difficult political issues in France, suggesting to some that they might consider joining forces.