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Fiat, Daimler in cooperation talks, says magazine

Oct 9, 2007, 14:35 GMT

Stuttgart - Leading German car maker Daimler AG is holding talks with Italian auto group Fiat in a bid to forge a cooperation deal between the two companies, an automotive magazine reported Tuesday.

This includes a new partnership arrangement for the next generation A and B class of the luxury Mercedes Benz car, which is the flagship of the Stuttgart-based Daimler group, the German magazine Auto Motor and Sport reported quoting company officials.

Daimler chief Dieter Zetsche and his Fiat counterpart Sergio Marchionne have already held talks about a possible deal, the magazine said. However, a Daimler spokesman declined to comment on the report.

Zetsche is also in talks with BMW AG chief Norbert Reithofer over a possible cooperative arrangement with the Mercedes luxury carmaker rival.

In particular, BMW and Daimler have been forced to consider closer ties as a result of the strong relationship between carmaker Volkswagen AG and its luxury offshoot Audi.

BMW and Daimler have also been talking about working together in the development of engines in a project which would include France's PSA auto group.

© 2007 dpa - Deutsche Presse-Agentur


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