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

It’s been rumored for some time and the newest comments from BMW CEO Norbert Reithofer is further proof that the propeller people are looking to get in bed with other automakers to cut the high costs of engine development and production.

This isn’t a first for BMW, which partnered with PSA/Peugeot-Citroen on the engine for the current crop of MINI models, but this newest endeavor could involve one of Bimmer’s biggest rivals, Daimler. Mercedes is in need of small, four-cylinder gasoline and diesel engines for its next line of A- and B-class vehicles, and the MINI’s mill could be a good fit. The talks aren’t exclusive with BMW, however, as Daimler is also sitting down with unnamed Japanese manufacturers to provide petrol and diesel powerplants.

[Source: Automotive News - sub. req’d]

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