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885 views November 25, 2007

Mercedes-Benz ends talks with Fiat

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Officials at Fiat and Daimler have been in negotiations since the middle of the year over a possible deal to co-develop several new models for their respective Alfa Romeo and Mercedes-Benz brands. Now it seems the talks may have come to an end with neither parties interested in a further partnership.

According to Auto Motor und Sport, the synergies formed from any partnership would be too small to make the deal worthwhile. Mercedes was expected to benefit from Fiat’s small car platforms for its next-gen A and B-Class models but according to one German official, “the Italians produce their small models more expensively than we.”

This leaves the door open for BMW to step in and continue its own talks with Mercedes. BMW execs have previously expressed interest in forming a partnership with Mercedes, sharing development of its next-gen Mini range with Mercedes’ next A and B-Class models.