Following swirling reports this morning, BMW Group and Fiat Group Automobiles have officially announced this afternoon that the two carmakers have just signed a Memorandum of Understanding for future cooperation on components and architectures, which will be initially under consideration for next-generation Mini and Alfa Romeo vehicles.

"The BMW Group and Fiat Group Automobiles (FGA) are considering the possibility of co-operation in the areas of components and architectures for their Mini and Alfa Romeo vehicles," the jointly-released statement read. "As part of possible cooperation, BMW Group will provide FGA with support in launching the Alfa Romeo brand in the North American market.

"A Memorandum of Understanding to this effect has been signed by Friedrich Eichiner, member of the Board of Management of BMW AG responsible for Corporate and Brand Development, and Alfredo Altavilla, Senior Vice President, Business Development, Fiat Group Automobiles and CEO of Fiat Powertrain Technologies," the statement continued.

"We are currently examining with the Fiat Group possibilities for the joint use of components and systems in Mini and Alfa Romeo vehicles in order to achieve economies of scale and thus cost reductions within the framework of our Number ONE strategy", Eichiner said on Monday in Munich.

Sergio Marchionne, CEO of Fiat Group and Fiat Group Automobiles, said: "The proposed co-operation with BMW is a significant cornerstone of our strategy of alliances. We are delighted to work with such an esteemed and respected partner in the automotive industry with the clear objective of improving the competitive position of both parties."