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]