Automotive News reports BMW and Hyundai are currently engaged in talks that may lead to the two companies partnering on engine development. A German industry newsletter reported that Hyundai Chairman Chung Mong-koo's son, Chugn Eui-sun, recently met with a small group of BMW executives in Munich, and that the move would likely help the two manufacturers offset the heavy costs of engineering a new engine group. That cost can be as much as $1.3 to $2.6 billion.
Not surprisingly, BMW refused to comment on the rumored deal, though the company has been quick to dismiss any notion of expanding its corporate partners beyond the current group. Right now, BMW works with PSA/Peugeot-Citroen, Toyota and Daimler, though the manufacturer is also currently in talks with General Motors. Even so, BMW has made no secret of the fact that it is currently hard at work on a new engine architecture, and a corporate partner would be a smart way to spread development costs.