The German companies confirmed yesterday that they were in talks. They are believed to be keen to collaborate, rather than merely supply components. Such a deal could help Rolls to cut the huge cost of developing a new model, estimated at pounds 200m.
Rolls, a subsidiary of the Vickers engineering company, has had talks with Mercedes about the purchase of V12 engines and other components. A spokesman for Mercedes ruled out buying an equity stake in the UK car maker.
BMW, which owns Rover Group, supplies body panels to Rolls. A spokesman said there were no plans to invest in Rolls-Royce.Reuse content