(Image source: Autoblog)

In an intriguing development, The Associated Press reports that Daimler, the maker of Mercedes-Benz cars, is in talks to share components and technology development with rival BMW, according to Daimler CEO Dieter Zetsche. The article said that while the two companies see each other as direct competitors, anything is possible in the wake of slow U.S. sales and pressure to cut costs.

"We are discussing potentially sharing components. And this might make sense specifically in regard to new technologies," Zetsche told reporters at the Beijing auto show, according to the report. So far, there are no actual agreements in place.

Surprisingly, this isn't the first time this has come up. Back in September, Autoblog quoted Dr. Zetsche as saying the automaker would be open to developing an engine with BMW; apparently those talks have since begun and expanded. Both companies have strong diesel-engine development underway, and Mercedes already has 50-state certification on several of their engines; that could be one place for collaboration.