Earlier this month Fiat Chief Sergio Marchionne revealed Mercedes-Benz was one of a number of companies Fiat was in talks with over a possible alliance, but apart from the confirmation of the talks we don’t really know much about the negotiations. Earlier reports suggested Fiat and Mercedes would likely form an alliance to help expand each company’s respective commercial truck businesses but now there are claims Fiat could use a Mercedes platform for the next-generation 169 flagship sedan from Alfa Romeo.

Last week we reported that Alfa Romeo’s future products would be RWD and the first of these new models, excluding the one-off 8C, will be the 169 flagship sedan that’s expected to bow in towards the end of 2009. Originally it was thought engineers would use the RWD platform from the Maserati Quattroporte but this would likely be too expensive for an Alfa Romeo product.

Italian media are now claiming Fiat may borrow a Mercedes platform for its new flagship, likely the next-gen E-class architecture, while Mercedes will source one of Fiat’s small car platforms for its future A and B-class models. This would allow both companies to share development costs and spread investment risk.

This month Daimler CEO Dieter Zetsche visited a Fiat factory in Cassino, Italy, where the Bravo hatchback is built. Unfortunately for Fiat, BMW is also reportedly in talks with Daimler over a deal to share the platform of the next-gen aMini with the A and B-class models.