Daimler open to cooperation, silent on Fiat report

FRANKFURT (Reuters) -- Daimler AG is ready in principle to work with other carmakers on projects of mutual interest, a spokesman said today, but he declined comment on a report it could develop compact cars with Fiat.

Speculation has swirled for weeks that Daimler could seek a partner to work on the next generation of Mercedes-Benz A-Class and B-Class compact cars, whose importance is being highlighted by the debate on cars' contribution to global warming.

BMW and PSA Peugeot Citroen have been mentioned as possible allies to develop small car platforms or new engines for them, and Germany's Auto Motor und Sport magazine said this week that Mercedes was in talks with Fiat.

"We don't exclude (collaboration accords) categorically and we are in cooperation with others. We will entertain them if they make sense in certain fields and certain areas," a Daimler spokesman said, but he would not discuss Fiat specifically.

Fiat also declined comment.

Mercedes-Benz still has time to find a partner for its compact car range, which it has said it may expand in future to generate more economies of scale.

The B-Class model is only two years old and the A-Class three years old, which means both could get "facelifts" to give them a new look before the next generation rolls out. New generations of models typically come every seven years or so.

In an accord unveiled in June, Fiat will supply Daimler truck engines in an eight-year deal worth 2.4 billion euros ($3.37 billion) as part of a wider strategic cooperation agreement.

Fiat has been forging strategic partnerships as a way to expand its business while keeping costs in check.