BMW, the world's largest premium carmaker, and its closest rival, Mercedes-Benz are in negotiations over a partnership to build subcompact cars, German motor magazine Auto Bild reported.
In July, the two companies are expected to make a decision on whether to build the next generation Mercedes A-Class on BMW's Mini platform, Auto Bild said in its forthcoming Friday edition without citing sources.
Heavy cost pressure means Mini runs the risk of losing money should its Oxford, England, plant not run at full capacity, so parent BMW is considering finding a partner.
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