It's been rumored for some time and the newest comments from BMW CEO Norbert Reithofer is further proof that the propeller people are looking to get in bed with other automakers to cut the high costs of engine development and production.
This isn't a first for BMW, which partnered with PSA/Peugeot-Citroen on the engine for the current crop of MINI models, but this newest endeavor could involve one of Bimmer's biggest rivals, Daimler. Mercedes is in need of small, four-cylinder gasoline and diesel engines for its next line of A- and B-class vehicles, and the MINI's mill could be a good fit. The talks aren't exclusive with BMW, however, as Daimler is also sitting down with unnamed Japanese manufacturers to provide petrol and diesel powerplants.
[Source: Automotive News – sub. req'd]