Daimler and Fiat have ended talks about possible platform sharing.


According to auto motor und sport magazine, Daimler chief Dieter Zetsche broke off the talks when it became apparent that any cost advantages from a cooperation with Fiat would not be as high as expected. “The Italians produce their small models more expensively than we do,” a Mercedes manager told the magazine.


Daimler is reportedly still in discussions with BMW, although if talks with its competitor do fail, Daimler will go it alone to develop new entry-level models.


The auto motor und sport article said that Mercedes managers are confident that the CORE cost saving programme has given Mercedes a new level of competitiveness in this area. “There are plans for the successor to the A and B class to developed in cooperation with a partner, but we are not completely dependent on this option. We want to stick to our goal of making a decision by the end of this year,” said head of Mercedes Benz cars, Klaus Maier.


The report added that a cooperation on engines and gearboxes for the small and compact car segment is unavoidable, given environmental requirements and the high level of competitiveness in this area.

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Mercedes is considering options here. A cooperation with BMW and PSA is a possibility, as is a partnership with a Japanese manufacturer.