It’s Official. BMW and Fiat will join hands and develop a small car platform which both the manufacturers will use for its next-gen small cars due for the start of the next decade.

The duo are also likely to ink a pact for developing a range of gasoline and diesel engines. The idea behind these deals is simple to understand- cost savings on the money spent on R&D and the blend of these two spearheads would yield better results compared to work done individually.

This is not the first time two manufacturers have shook hands over a platform or an engine. Two big hit SUV’s the Audi Q7, and the Porsche Cayenne share the same platform while Fiat’s Multijet engines are used worldwide by several manufacturers like GM, for example.

Last year Mercedes was looking for a partner to work on its future small cars but eventually though, talks with both Fiat and BMW failed and it decided to go all alone.

The new platform developed will be used on the next-gen Fiat Grande Punto and BMW’s 3rd gen Mini small car, both cars carry launch dates in 2011. So expect some fireworks without much emissions or noise!

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Source: Reuters

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