BMW and Fiat Planning Small Car Alliance, Alfa Romeos could be sold through MINI in the U.S.

BMW Group and Fiat Group have signed a Memorandum of Understanding (MoU) to explore the possibility of co-operation in the areas of architectures and components for their MINI and Alfa Romeo vehicles. As part of the deal, BMW will support Fiat in launching the Alfa Romeo brand in the North American market, or to put it simple, MINI U.S. dealers would have the chance to also sell Alfa Romeos. If all goes well, the final deal is expected to be signed off by the end of the year. -Continued

"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", said Friedrich Eichiner, member of the Board of Management of BMW AG responsible for Corporate and Brand Development.

Sergio Marchionne, CEO of Fiat Group said: "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.