may be close to a deal to develop new high-efficiency small engines with BMW
for use in the next generation of small cars from both companies. BMW currently uses engines co-developed and built with PSA
for the MINI
. Mercedes-Benz, meanwhile, is trying to reduce the costs of their next generation A- and B-Class
small cars. While Mercedes
hasn't settled on what platform to use for those cars, the new engine partnership will at least be a first step. Both companies will have to dramatically reduce the fuel consumption of their next generation engines to meet proposed EU carbon-dioxide emissions limits.
[Source: Motor Authority]