BMW and PSA to end joint engine development?

[Bartek S.]

BMW and PSA to end joint engine development?
View attachment 598f82656e6ce5f876ab16e37e98f804.jpg
Unlikely bedmates BMW and the PSA Peugeot Citroen Group are breaking up - or at least asking each other for some space. The two companies had joined forces in recent years to produce a range of 1.4L to 1.6L motors, powering BMW’s second-generation MINI and cars from Peugeot and Citroen. The venture was originally intended to help the auto makers to improve engine technology in the fiercely competitive compact car segment, while saving money by sharing development costs.

BMW development executive Klaus Draeger recently told a German industry publication that cooperation with PSA was effectively ended. This news comes despite plans in late 2006 to evaluate the expansion of joint engine development efforts. Despite the success of the motors spawned by the joint venture, the engines were quite expensive to produce according to PSA boss Christian Streiff.
This summer, Mercedes proposed a closer working relationship with BMW, especially with engine technology. BMW hasn’t agreed to the partnership, however, and with the PSA deal now out of the picture, it looks like BMW will be developing the lion’s share of future engines on its own.

 

[Giannis]

What are the real reasons behind the end of this cooperation? I think that those two engines where very good!

 

[Wolfgang]

Looks like Daimler might join them?

BMW offers Daimler engine cooperation with Peugeot - report

By Berlin Bureau
Last Update: 11:39 AM ET Sep 30, 2007

BERLIN (MarketWatch) -- BMW AG (BWM.XE) is offering DaimlerChrysler AG (DAI) a cooperation deal with French rival Peugeot SA (12150.FR) to jointly develop an engine, according to the advance release of a report in Monday's edition of Handelsblatt.

BMW Chief Executive Officer Norbert Reithofer told the newspaper that the door for such a cooperation would be open if Daimler is interested in it, as a third partner would result in further synergies for the development of new petrol engines.

BMW already has a cooperation agreement with Peugeot to build car engines for its Mini range.

Newspaper Web site: Handelsblatt.com - Aktuelle Nachrichten aus Wirtschaft, Politik, Unternehmen und Märkten
-Contact: 201-938-5400

 

[EnI]

Daimler to get in on BMW/PSA engine deal[/URL]

08 October 2007




PSA and BMW responded to reports that its engine alliance had split last week by asserting that the deal is actually as strong as ever, and growing. The deal will expand to produce 1 million engines for BMW and PSA in 2009; recent reports even suggest that Daimler could buy its way into it, in search of cheaper-to-produce engines for its small cars.
The BMW Group and PSA Peugeot-Citroen agreed to work together to develop and manufacture small-capacity petrol engines in 2002. The 1.4- and 1.6-litre petrol engines that resulted are currently used in Mini, Peugeot and Citroen models, and will go on to be included in the BMW 1-series next year.
Annual production figures currently stand at 640,000 units, but the 1 million mark should be achieved in 2009.
Further to that, Daimler AG could become the third car-maker to join the engine venture, if reports in the German press are to be believed. PSA boss Christian Streiff has already gone on record with his view that Daimler should be brought into the deal; in a report in Handelsblatt last week, BMW CEO Norbert Reithofer confirmed that its domestic rival has shown interest in being included in the engine development deal.
"A third partner would bring improved synergies," said Reithofer. "Daimler is interested, and the door is open."
The report has fuelled speculation in Germany of further collaborations between the BMW Group and Daimler AG; many expect the companies to join forces on the development of new small cars in the near future.




Source: Autocar

 

[Deleted member 25]

Engines for 1 series ? Do you confirm it Eni ?

 

[Wolfgang]

Another option: FIAT

FRANKFURT (Thomson Financial) - Daimler AG is in talks with Fiat SpA over a cooperation to develop its next generation compact A-class and B-class models, Auto Motor und Sport magazine said, without saying where it got the information.
Daimler's chief executive has talked personally with Fiat (nyse: FIA - news - people )'s CEO Sergio Marchionne about setting up a cooperation that could help the German carmaker produce compact cars more cheaply, it said.
The Italian carmaker would at the same time benefit from Daimler's expertise in the mid-range car segment, it said.
Daimler is also still in talks over a possible cooperation with Bayerische Motoren Werke AG that would see it using the Mini model's platform for its new A-class model coupes and convertibles, while offering the Smart model's rear-wheel drive platform for a new city-car model, the magazine said.
maria.sheahan@thomson.com
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