Daimler and BMW could cooperate on the development of certain components, and on purchasing.

According to the Wall Street Journal Europe on Monday, the two companies have been in much more intensive talks than previously thought. Neither company would confirm the report to the press agency dpa-AFX, but they did confirm earlier statements that opportunities for further cooperation are currently being sought.

The WSJ reported that managers and engineers from both companies have been consulted in talks about possible joint projects. One area under discussion reportedly has been the joint purchasing of parts for seat frames and heating, ventilation and air conditioning units. This would give the companies a better negotiating position with suppliers.

Another possible area of cooperation is the joint development of engine components.

Daimler and BMW have confirmed several times that they are in discussion over possible future cooperations. It had been thought that discussions until now were focused mainly on parts and engines for the new Mercedes A-Class due out around 2012.

BMW and Daimler already cooperate on hybrid drive development.