BMW, Fiat to examine car components tie-up for MINI, Alfa Romeo UPDATE

(Updates with industry source comments)

MUNICH (Thomson Financial) - Bayerische Motoren Werke AG said it and Fiat SpA unit Fiat Group Automobiles have signed a memorandum of understanding to examine co-operation in the areas of vehicle architectures and car components.

'We are examining currently the possibilities for joint use of components and systems for the MINI and Alfa Romeo brands,' a statement quoted BMW board member Friedrich Eichiner as saying.

Both companies have agreed not to disclose details.

The statement said results of the tie-up talks would be presented by end of the year.

Eichiner, responsible for brand development, and Fiat senior vice-president for business development Alfredo Altavilla signed the agreement.

In Milan, Fiat said in a statement the talks will include co-operation on how BMW can support the reintroduction of Fiat's Alfa Romeo brand in North America.

Earlier, Fiat CEO Sergio Marchionne said the company is continuing to examine a series of options for Alfa's return to the United States and he has previously talked about producing some models in the country.

Marchionne said possible co-operation is a significant step in Fiat's alliance strategy and will make both companies more competitive.

Industry sources said the joint platform could be used on the Alfa Romeo model to replace the current 147 model, due for launch in 2009 in Europe.

Marchionne has said the Alfa launch in the United States will not be before 2010, the sources noted.

In the United States, the two companies are looking at BMW providing access to its commercial network for Alfa, they said.

BMW's U.S. sales operation includes a dedicated Mini network, they said, adding Alfa could use the common back office. [e-mail] mog/ajb/nt/ajb/nt/wj COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.