The BMW Group has signed a memorandum of understanding with Italy’s Fiat Group that would see the two companies share architecture and componentry between their respective MINI and Alfa Romeo brands.

“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”, Friedrich Eichiner, member of the Board of Management of BMW AG responsible for Corporate and Brand Development, 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.

Details of the agreement won’t be revealed until later this year.