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Fiat eyes Mercedes alliance

2007-11-09 12:07
Turin - Fiat is talking with German carmaker Daimler about everything, not just engines, the Italian carmaker's chief executive, Sergio Marchionne, said on Tuesday.

Speculation has swirled that Daimler could seek a partner to work on the next generation of Mercedes-Benz A-Class and B-Class compact cars.

"We're not just talking with Daimler about engines, we're talking about everything," Marchionne told reporters on the margins of a conference.

He gave no details about the discussions.

Fiat, Europe's fifth-biggest car maker, said last month it was in contact with Daimler unit Mercedes-Benz about a possible alliance. Fiat has had similar contacts with other carmakers.

Fiat signed a €2.4bn accord with Daimler in June to supply truck engines as part of a wider strategic agreement.

Marchionne also said he expects U.S. markets to recover quickly from the subprime mortgage crisis. The impact should be over by the end of the first quarter of 2008, he said.

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