Italian carmaker Fiat will work with Germany's BMW to develop a new platform for small cars, industry magazine Automotive News Europea said on Tuesday, citing supplier sources.
BMW, Fiat to develop small car
The two companies are also considering developing a new family of petrol and diesel engines, the magazine added.
Earlier on Tuesday, Fiat Chief Executive Officer Sergio Marchionne had told journalists the company would sign an industrial alliance on cars on Wednesday, without giving any further details.
Fiat and BMW press officers declined comment.