Daimler to join BMW and PSA engine alliance

PSA Peugeot-Citroen and BMW said last week that their deal will expand to produce 1 million engines for BMW and PSA in 2009 and the new Daimler AG could be looking to get in on the deal. Recent reports say that Daimler is looking to buy it way into the BMW/PSA alliance to produce engines for its small cars.

BMW and PSA began their collaboration in 2002 to build small gasoline engines. The 1.4 liter and 1.6 liter engines that are produces as a part of the alliance are currently used in BMW’s MINI Cooper cars and small Peugeot and Citroen models. The engines are expected to be included in the BMW 1-Series as well.

According to a report by AutoCar, Daimler AG could become a part of the joint engine venture. BMW CEO, Norbert Reithoer as already invited Daimler into the group.

“A third partner would bring improved synergies,” said Reithofer. “Daimler is interested, and the door is open.”

According to previous reports, Mercedes is in talks with BMW over a partnership to build subcompact cars.


Source: AutoCar

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