BMW Group and Fiat Group Automobiles sign Memorandum of Understanding

The BMW Group and Fiat Group Automobiles (FGA) are considering the possibility of co-operation in the areas of architectures and components for their MINI and Alfa Romeo vehicles. A Memorandum of Understanding to this effect was signed by 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.

The two partners have agreed not to divulge details of the possible collaboration. The results of the cooperation discussions will probably be achieved by the end of the year.


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mini22 - 7/8/2008 5:28:22 PM

+1 Boost

I don't know if the cooperation is going to go that far. Rather it's a way for BMW to find ways to reduce the cost of building the Mini and for Fiat to reduce the cost of building the Fiat Grand Punto and Alfa Romeo Mito. In addition starting next yr Alfa's will be sold at Mini dealerships in the US. Both the Fiat Grand Punto and Mito are FWD so BMW has not committed to giving Fiat/Alfa their RWD platforms at all. Frankly this makes sense as why would BMW want to give Alfa the opportunity to directly compete with them on their main car lines. Because BMW has made very little money on Mini they have been looking for ways to cut costs. Also this would help BMW on a future One series going FWD. The only caviat is that the Mito and a joint project 940 Alfa will compete directly with Mini and Mini Clubman.