Bayerische Motoren Werke AG and DaimlerChrysler AG's Mercedes division are in talks to cooperate on making a compact car based on BMW's Mini model, Auto Bild magazine reported, without saying where it got the information.
A decision is expected at the end of this month, it said.
A spokesman for DaimlerChrysler declined to comment on the matter, but added that the company does not rule out cooperation with peers.
DaimlerChrysler yesterday denied a report saying the company plans to expand its existing hybrid engine cooperation with BMW.
