Fiat and BMW have announced that they plan to co-operate on small-car platforms, engines and components. The deal would allow BMW to cut the cost of building its successful Mini while allowing Fiat to develop a far superior chassis to the one that currently underpins the Fiat Grande Punto and Alfa Romeo MiTo. The platform would also be capable of using an all-wheel drive drivetrain, allowing Mini and Fiat to built mini-SUVs as well as poeple carriers, small coupés and convertibles. The two companies are also rumoured to be considering co-operating on a new family of small petrol and diesel engines, although the most likely scenario is that BMW will be responsible for the chassis development and Fiat looks after the engines. It will take until the end of the year to thrash out the finer points of the deal, which could even include BMW offering Alfa Romeo help to get established in the U.S. in 2010. It's unlikely that BMW will continue to use PSA (Peugeot/Citroën) engines in its Mini models if the deal goes ahead, although Fiat's current deals with PSA, Suzuki, Ford and Tata won't be affected.
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