BMW & Peugeot untie the knot on joint engine development

BMW has said "non, merci" to continuing its diesel engine partnership with PSA Peugeot Citroen. The two automakers began working together two years ago to create 1.4- and 1.6-liter gasoline engines for BMW's MINI and PSA cars. Despite both companies at the end of last year looking at expanding their joint research into a high-tech engine, the synergies weren't providing the cost benefits desired with the small engine, so the affair has come to an end.

BMW has had a few partners when it came to small engines -- just before joining up with Peugeot, DaimlerChrysler was building MINI engines in Brazil. Mercedes recently broached the idea of working with BMW on a frugal, low-emissions motor, a public offer that has gone unanswered by BMW. Nevertheless, with the large number of B-segment cars in development by numerous manufacturers, it would seem likely that people are going to be partnering up again sooner or later.

[Source: Motor Authority]

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