Fiat, BMW in parts sharing pact for Mini, Alfa Romeo
08 Jul 2008
Leading European automakers BMW AG and Fiat today said that they had signed a memorandum of understanding to cooperate in the development and manufacturing of parts for the Mini and Alfa Romeo brands, details of which the two partners have agreed not to divulge. The results of the cooperation discussions will probably be achieved by the end of the year.
The two car makers say they are considering the possibility of co-operation in the areas of architectures and components for their Mini and Alfa Romeo models for a memorandum of understanding was signed betwen Friedrich Eichiner, member of the board of management of BMW AG responsible for corporate and brand development, and Alfredo Altavilla, senior vice president, business development, Fiat Group Automobiles and CEO of Fiat Powertrain Technologies.
"We are currently examining with the Fiat Group possibilities for the joint use of components and systems in MINI and Alfa Romeo vehicles in order to achieve economies of scale and thus cost reductions within the framework of our Strategy Number One", Eichiner said in Munich.
''The proposed co-operation with BMW is a significant cornerstone of our strategy of alliances. We are delighted to work with such an esteemed and respected partner in the automotive industry with the clear objective of improving the competitive position of both parties,'' Sergio Marchionne, CEO of Fiat Group and FGA, said in Turin.
However, industry magazine Automotive News Europe said today that the pact covers development of a new platform for small cars and the two are also considering developing a new family of petrol and diesel engines.
Fiat's chief executive officer Sergio Marchionne told reporters that the company would sign an industrial alliance in the car sector on Wednesday, without disclosing the identity of the partner company.
Tata Motors that erecently acquired Ford's Jaguar and Land Rover brands has a tie up with Fiat in India.
