Conflicting reports have emerged this week suggesting that talks between Fiat and German automaker Daimler AG had either floundered or were continuing.

Conflicting reports have emerged this week suggesting that talks between Fiat and German automaker Daimler AG had either floundered or were continuing. First reports that Fiat was involved in secret discussions with the German luxury carmaker that could lead to Fiat and Mercedes-Benz sharing several platforms over the next few years emerged in early October.

It was believed that Daimler was interested in using Fiat’s small platforms to underpin several next-generation Mercedes-Benz models, including the A- and B-Class. The German firm is also involved in on-going negotiations with BMW, particularly in the area of engine co-operation, but also over sharing the MINI platform, leading some industry commentators to believe that the talks with Fiat were to leverage these discussions. Last month, Fiat CEO Sergio Marchionne widened the perceived scope of the talks by telling reporters, “With Daimler we are speaking about everything, not just engines.”

Last week, some German media sources claimed that talks between Fiat and Daimler had broken down, and without naming sources, stated that Daimler viewed the potential cost savings to be obtained through using Fiat’s architecture as not being great enough to make the possible platform-sharing projects viable.

However, Marchionne has denied talks have broken down. Forbes quoted him as telling reporters yesterday: “The talks with Daimler go forward, as with other constructors. Daimler has never denied officially to have interrupted its contacts with us, it is a newspaper that has written that.” At the same time, Reuters was more non-committal about the talks, reporting the Fiat boss as saying: “If (the talks) break off, we have lots of alternatives, from internal development to working with others.”