Germany and France join forces

19 December 2006

Further BMW/Peugeot-Citroen tie-in explored
Likely cooperation on a 'family of engines'
Follows successful development of 1.6-litre petrol

BMW's engine plant at Hams Hall may have a role in a new collaboration with Peugeot-Citroen PSA

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BMW and French firm Peugeot-Citroen PSA have announced that they are likely to work together to develop a new family of petrol engines.

The companies have already developed a new 1.6-litre petrol engine together, which will power a host of cars from BMW, Citroen and Peugeot, including the latest Minis and new Peugeot 207.

Now the two manufacturers say they will conduct a feasibility study to see whether they would benefit from further cooperation, and said in a joint statement: 'If the study confirms the expected technological, industrial and financial benefits, the two companies intend to enter into a join development programme.'

No more information on the size and outputs of the engines has been released at this stage, but it's likely that they will be larger than the existing 1.6-litre petrol.

It's uncertain what the potential cooperation could mean for the Hams Hall engine plant in the UK. Hams Hall was the first BMW engine plant built outside Germany or Austria, and builds 1.6- and 2.0-litre engines.