BMW executive board member Friedrich Eichiner said in a statement: '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.'
The move will help both companies reduce costs and the alliance should be finalised by the end of the year.
Fiat CEO Sergio Marchionne added: 'The proposed cooperation 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.'