Fiat and BMW Reportedly Developing Small Car

Although they are often referred to as two of the most powerful automakers in Europe, it may seem like BMW and Fiat plan to join forces for designing a new small car model perfectly matching the collapsing market's demands: low fuel consumption and reduced CO2 emissions. Even though it's only a rumor, the report published by AutoExpress claims the new model will come in the form of compact hatchbacks with rear-mounted engines and offering room for four.

In order to achieve a higher fuel economy rating, the new model will incorporate all kinds of fuel-saving technologies, including start/stop systems. In addition, the two manufacturers will replace traditional materials with lightweight alternatives, such as as plastics, for reducing weight and thus, improving fuel efficiency.

What's interesting is that BMW may attempt to revive the Isetta name for the upcoming model, the aforementioned source wrote in the report, with Fiat planning to sell its own version of the model under the Topolino nameplate. While Isetta was one of the most popular small cars designed by BMW during the '50s, Topolino stayed in production for more than 20 years, between 1936 and 1955.

The first models are expected to arrive in 2011 and will be sold under the MINI brand, while BMW's and Fiat's own versions will likely reach the market one year later, the aforementioned source added according to MotorAuthority.com.

As part of the two partners' plan to concentrate on fuel-efficient models, an electric version of their joint product may also arrive but still, there are no official details on whether the companies are indeed working together for a new model.