BMW Won’t Extend Its Cooperation with PSA, Magazine Says

BMW AG is not planning to extend its joint projects with PSA Peugeot Citroen beyond the current engine partnership, according to a report from Germany’s Auto Motor und Sport magazine, quoted by the Automotive News Europe.

"A further cooperation in the area of other components, let alone platforms, is not planned," BMW's head of research and development, Klaus Draeger, told the German car magazine in an interview published on Thursday.

However, a spokesman for BMW said the quote in Auto Motor und Sport is "misleading," saying that nothing has changed since early February, when BMW CEO Norbert Reithofer said the two companies would "look into options for further collaboration," citing the possibility of joint development, production and procurement at a systems and component level.

The CEO's comment followed an announcement that the two carmakers would extend their engine cooperation, reaching an agreement to jointly develop a next generation of four-cylinder gasoline engines that will meet the upcoming Euro 6 emission requirements.

BMW and PSA Peugeot Citroen have built together more than 1.3 million engines since 2006, which is when they initially agreed to make a family of 1.4 and 1.6-liter units that are used in Mini, Peugeot and Citroen cars.

Draeger also said in the interview that Daimler AG's Mercedes-Benz unit and BMW continue to purchase a double-digit number of components jointly, but aimed to expand this by identifying further parts they could buy together to gain economies of scale.

BMW and PSA Peugeot Citroen currently build together two petrol engines: a 1.4-liter with 90 or 95 horsepower and a 1.6-liter developing 120 horsepower in naturally-aspirated guise and 150/175 horsepower in turbocharged form.
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