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Mercedes mulls Mini motors - magazine

Thu Oct 18, 2007 5:44am EDT

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FRANKFURT, Oct 18 (Reuters) - Daimler AG (DAIGn.DE) plans to use four-cylinder direct injection engines developed by BMW's (BMWG.DE) Mini brand and built by PSA (PEUP.PA) in the next generation of Mercedes-Benz compact cars, a magazine reported.

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Germany's Auto Bild, without citing sources, said Daimler intended to use the engines in the new B-Class compact from 2011. Cooperation would be confined to engines rather than complete compact car platforms from Mini, it added.

That meant prospects for using a Fiat (FIA.MI) platform for Mercedes compact cars had dwindled sharply, it said in the summary of a report to appear on Friday.

A Mercedes spokesman declined to comment in detail on the report, although he reiterated that the company was open for cooperation deals where they made sense.

"Mercedes is basically strong enough to implement future projects by itself," he said.

BMW declined comment.

The magazine said the next-generation B-Class would replace both of the current A-Class and B-Class versions. It was planned to appear as three- and five-door models, a sport utility vehicle, a coupe and a convertible.

A final decision was due next month, it said.



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