BMW to build Alfa Romeos in U.S.?

Earlier this week Fiat boss Sergio Marchionne revealed his desire to partner with an American carmaker over a deal to build Alfa Romeos in the U.S., but according to latest reports BMW could be the carmaker Fiat signs up with. Alfa Romeo has been planning its 2009 North American relaunch for years but the recent weakening in the U.S. dollar against the euro has thrown a spanner in the works.

The best solution is to start manufacturing cars locally but Alfa Romeo will need help. Although teaming with one of the Detroit 3 carmakers seems like a logical solution, Italian financial newspaper MF, citing sources close to Fiat, claims BMW will start production Alfa cars in the U.S. as of 2011.

The source claims that of the Detroit 3, Ford is the most likely choice, but a European group with production sites in the U.S. cannot be ruled out. Fiat has also been linked with BMW over a deal to share platforms and technology.

BMW currently has a plant in Spartanburg, South Carolina, and earlier this month it revealed it was spending $750 million to help expand capacity from 100,000 to 240,000 units annually by 2012 - around about the same time Marchionne wants to start local Alfa Romeo production. However, BMW and Alfa Romeo both compete in the prestige segment and any animosity between the two could prove to be a hurdle during negotiations.