July 24, 2002

BMW and PSA Peugeot Citroen join forces to develop new engines

Munich, Germany – The BMW Group and PSA Peugeot Citroen have announced that they have joined forces to develop and manufacture a new family of small gasoline engines. Peugeot, Citroen and future variants of MINI vehicles will be equipped with engines out of this cooperation project.

The BMW Group R&D department will be in charge of designing the engines, and the common project team will be based in Munich. PSA Peugeot Citroen will manage process development, engineering for production as well as procurement. The production capacity will meet the future needs of Peugeot, Citroen and MINI vehicles and could reach up to 1,000,000 units a year.

The cooperation which calls for both expertise in automotive technologies and the ability to manage large-scale production, is expected to generate economies of scale and meet both partners’ segment specific gasoline engine requirements.

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