(Fri Jul 11 08)

The BMW and Fiat Groups have signed a memorandum of understanding which could lead to close co-operation between the two automotive giants relating to their MINI and Alfa Romeo brands.

Neither party is giving away any details at the moment, but there is talk of "the possibility of co-operation in the areas of architectures and components", which would suggest sharing platforms and engines at some point in the future.

Discussions are under way, and it's expected that they will lead to a more detailed announcement towards the end of this year.

On another note, BMW is also looking into the possibility of electric vehicles, and is preparing "several hundred" MINIs for the purpose. The cars are built in Oxford but will be transferred to Munich for modification; tests will then be carried out over the next year to 18 months, though BMW expects to issue more information about the project well before the test programme has been completed.

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