German company BMW and Italian giant Fiat have signed a memorandum of understanding. This means that BMW and Fiat could share from a parts alliance on the Mini and Alfa Romeo brands.
The joint production and development of common components and platforms would reduce costs for both manufacturers.
Further discussions are to be held and details will be published by the end of this year.
For Fiat this would be another shrewd alliance as it has formed quite a few in the past decade which has seen the car maker turn around its fortunes.
Fiat chief executive Sergio Marchionne when talking to BBC said the proposed alliance is a significant cornerstone of Fiat’s strategy and would improve the competitive position of both parties.
Marchionne added: “We are delighted to work with such as esteemed and respected partner in the automotive industry.”
Simon McBride
