Filed under: Economy, Euro, BMW, Mercedes Benz, MINI

If Automotive News‘ sources are to be believed, BMW and Mercedes-Benz might be joining forces to develop a new front-wheel drive architecture that would underpin both automakers’ compact offerings. BMW is likely in the process of developing a new platform for its MINI and Mercedes has already announced plans to ditch its A-class ultra-compact. The idea that the two rivals would come together to co-develop a product might seem preposterous, but at the end of the day, it’s all about saving as many euros as possible.

If a joint effort does take place, expect Mercedes to use its own powertrains for two compact vehicles, likely new A- and B-classes. And no, Chrysler isn’t in the running to help out.

[Source: Automotive News - Sub. Req.]

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Filed under: Economy, BMW, Mercedes Benz, Peugeot

Just because BMW declined Mercedes’ public offering to develop engines together doesn’t mean that the 3-pointed star and the roundel can’t work together at all. Mercedes has a B-Class car arriving in 2011, and it needs motors. BMW and Peugeot have developed 4-cylinder direct injection lumps that power the MINI, and Mercedes is eying the cutting edge powerplants for its new compact car.

The new B-Class would take the place of the current A- and B-Class cars cars, and come in five flavors: 3-door, 5-door, SUV, coupe, and convertible. BMW announced just this month that it would be ending its partnership with Peugeot on those engines, so it is unclear how Mercedes would get them in 4 years time. Regardless, Mercedes is due to make a decision about what powers the new B-class by next month.

[Source: Auto News, sub req’d]

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