BMW Group & Fiat Officially Sign \”Memorandum of Understanding\”

BMW Group Press Release: 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.

Related Posts Plugin for WordPress, Blogger...
  • Gabe… I feel this is the beginning of the end on many levels; This is a sign that BMW can no longer thrive as an independent. A few months back BMW and Daimler engaged in similar talks.

    If BMW is going to share a parts bin they better be able to produce a car with driving dynamics and quality that is far better than the other models that share the components.

    We are talking much more than a BMW designed engine being produced by a different manufacturer.

  • Jon

    Not sure if I agree with that view Michael. If this were the case then would it not have began when they started using the Tritec motor for the Mini brand or the more recent Prince engines?

    I don’t think of this as much for the benefit for BMW as much as a boon for BMWMini. I seriously believe we won’t be seeing BMW losing its independence for the actual BMW brand anytime soon.

    Just my point of view

  • Jon, I agree with what you are saying but that is the point, we are no longer just talking a drive train, we are talking systems and other components.

    Strategy number ONE is all about saving money and increasing economies of scale.

    Why would someone choose to buy a BMW over a car that was much cheaper and shared a good majority of the parts bin? For the brand name…

    I am of course pessimistic because someone has to be the bad guy in a commentary/discussion 🙂

  • Jon

    Your taking my role Michael, I am sure I am the bad guy 😉

    I hear what your saying, and it does make sense. However I would say that in all actually if part by part we were to look at a BMW I would bet a considerable numbers of components are outsourced. While it may have the BMW logo on it doesn’t mean that it came from a BMW operated plant. I think this is the case with almost all manufactures. I think the key aspect is that this agreement between BMW and Fiat needs to have BMW keep close tabs on any products coming out of this agreement meets the high standards of BMW.