Fiat, Mazda to Form Car Venture

Fiat SpA has signed a non-binding memorandum of understanding with Mazda Motor Corp. to co-develop a new roadster for the Mazda and Alfa Romeo brands. The partners expect to finalize the agreement in the second half of this year.

The venture's small rear-wheel-drive cars will ride on the platform used by Mazda's next-generation MX-5 (Miata) roadster and be built at Mazda's plant in Hiroshima, Japan. Production of the Alfa version is scheduled to start in 2015.

Mazda says the companies don't plan an equity alliance. The Japanese company has been seeking partners since Ford Motor Co. reduced its stake in Mazda to 3.5% in late 2010 from a controlling 34.4% stake in 2008.

Fiat and Mazda say they will discuss further cooperation in Europe, which could help Mazda boost its sales there and give Fiat additional models to build at its underutilized Italian factories.

Fiat hopes Mazda can help it expand its presence in Asia, analysts opine. The Italian company also wants to broaden the lineup of Alfa Romeo, which is set to return to the U.S. by the end of next year after an 18-year absence.

Bloomberg News reports that the Alfa will be a replacement for the iconic Duetto Spider made famous in "The Graduate" movie in 1967. The car will be aimed mainly at the North American market, according to the news service, which cites an unidentified source. It says Fiat hopes the Alfa roadster will match the MX-5's U.S. sales volume of 10,000-15,000 units per year.