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.