Fiat and BMW have announced a plan to cooperate on platforms and components.

BMW brand development head Friedrich Eichiner said: "We are currently examining with Fiat group, possibilities for the joint use of components and systems in Mini and Alfa Romeo vehicles." The BMW statement said Eichiner and Alfredo Altavilla, Fiat's head of business development, have signed a memorandum of understanding, to cooperate on architectures and components. BMW said cooperating with Fiat would help it achieve economies of scale and cost reductions, as part of its Number One strategy. It said the results of its discussions with Fiat would be known by the end of the year.

Automakers are increasingly cooperating with competitors to reduce investments costs for new models.