Fiat and Ford have agreed to cooperate on two new small cars for the European market. New versions of the Fiat 500 and Ford Ka will be built with common parts but "strong syling differences."
Fiat desperately needs to cut costs to meet its goal of profitability in 2007. The agreement with Ford follows an arrangement with GM which imploded earlier this year.

The Fiat-Fords will use parts and components of Fiat's Panda. The new Fiat 500, a retro-revival of the popular post-war city car, is scheduled for a 2007 launch.

More details here.






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