27.03.2008 ITALIAN MEDIA REPORT SUGGESTS BMW AS A US PARTNER FOR ALFA ROMEO

ALFA MI.TO

Italian financial newspaper MF claimed yesterday that BMW could be in the picture as Fiat looks for a partner to build cars in the United States for the Alfa Romeo division.

Italian financial newspaper MF claimed yesterday that BMW could be in the picture as Fiat looks for a partner to build cars in the United States for the Alfa Romeo division.

Earlier this week in an interview with the Financial Times, Fiat Group CEO Sergio Marchionne revealed pointers about the Italian firm's ambitious plans for the United States which will see the imminent arrival of the Alfa Romeo sports car division next year, followed by the trucks-to-buses Iveco arm, as well as proposals to sell Europe's most talked about car of the last year, the Fiat 500 in North America.

He revealed that Fiat was talking to the big three North American carmakers - General Motors, Ford and Chrysler - about assembling Alfa Romeo models in their factories on its behalf. "You don't even need a full hand to count them," Marchionne told FT, "so let's assume that we know them all and we talk to them from time to time about a variety of options."

Yesterday however MF, quoting sources close to Fiat, claimed that BMW could be chosen as a North American partner to build Alfa Romeo models. The Milan-based newspaper said that while the focus was on the big three, a European partner could not be ruled out, and it claimed that BMW would be the favourite. Unconnected recent media stories have linked Fiat to talks with BMW in Europe over platform and technology sharing.

BMW has a factory at Spartanburg in South Carolina and earlier this month revealed a US$ 750 million plan to increase capacity from 100,000 to 240,000 units annually by 2012, with the biggest change to achieve this coming from a US$27 million expansion to the 70,000 sq ft paint shop. The factory currently builds the Z4 model for worldwide markets as well as the X5, and shortly the new X6. Production of the X3 model is to be moved to the plant in two years time, while the Z4's lines will be moved to Germany.
 

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