While the Mini may be a sales success in nearly every way measurable, it’s causing major problems for BMW. The problem is that it’s still too expensive to produce, even though the MkII model was supposed to decrease costs. According to a report from the German Manager magazine, BMW group will therefore build a new variant of the Mini called the Colorado in co-operation with Austrian auto outsourcing company Magna Steyr. We’ve already reported this rumor before, but it seems that BMW will be building the new car in co-operation with arch-rival Mercedes, who will use the platform to build a jacked-up pseudo SUV version of the A-class.

BMW is also hard at work decreasing other costly items and processes for the next Mini update as it costs as much to produce as a 1-series at the moment. A BMW source claims that they may even be able to reduce costs by €600-700 per unit, which is huge in an industry where margins are always tight even if you’re in the luxury car biz.

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Daimler to join BMW and PSA engine alliance


PSA Peugeot-Citroen and - ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER said last week that their deal will expand to produce 1 million engines for BMW and PSA in 2009 and the new Daimler AG could be looking to get in on the deal. Recent reports say that Daimler is looking to buy it way into the BMW/PSA alliance to produce engines for its small cars.
BMW and PSA began their collaboration in 2002 to build small gasoline engines. The 1.4 liter and 1.6 liter engines that are produces as a part of the alliance are currently used in BMW’s MINI Cooper - ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER and small Peugeot and Citroen models. The engines are expected to be included in the BMW 1-Series as well.

According to a report by AutoCar, Daimler AG could become a part of the joint engine venture. BMW CEO, Norbert Reithoer as already invited Daimler into the group.
“A third partner would bring improved synergies,” said Reithofer. “Daimler is interested, and the door is open.”
According to - ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER, Mercedes is in talks with BMW over a partnership to build subcompact cars.

Source: AutoCar




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Hm...

More & more sources are reporting MB & BMW will share MINI & smart platforms in the future: MINI & A-class models will share a common modular platform solution, while /smart/ platform will be used form BMW's new Isetta - especially the platform for hybrid & full electric drive.

sure why not.. good for both..
enjoy it i say..save some money