PSA and BMW Aim to Expand Cooperation

Rumors regarding a potential expansion of the existing cooperation between PSA and BMW reached the web a long time ago but the topic is again making the headlines following a report published by German newspaper Sueddeutsche Zeitung. According to this source, both PSA Peugeot Citroen and BMW are now discussing a potential expansion of their existing collaboration, but no confirmed details are available at this point.

PSA CEO Christian Streiff hasn't provided too many details regarding the negotiations but he did mention that the French group might supply even more engines to BMW, Just-auto.com wrote quoting the aforementioned source. However, negotiations are still in early stages, he said, and go just like "the usual talks between companies which are working together on technical issues," as Just-auto wrote.

At this time, PSA is the supplier of diesel engines for BMW's MINI brand, including the 1.4- and 1.6-liter units used on several MINI models. The same engines are also used by Peugeot on 207 and 308 and by Citroen on C4 and C4 Picasso.

A similar report came approximately one month ago when La Tribune reported that representatives of the two companies met with French authorities but no conversation topics were actually unveiled. However, BMW spokesman Marc Hessinger said representatives only discussed a potential collaboration between France and Germany.

An expanded alliance between BMW and PSA would pretty much make sense given the current difficult market conditions, analysts explain, as it could allow the automakers to better cope with the recession and minimize loses in every single sector. However, we remind you there's nothing official yet so we're still waiting for a statement from one of the two groups.