Peugeot-Citroen boss reveals plans to extend part-sharing deal
26 October 2009

PSA Peugeot-Citroen is looking to extend its partnership with BMW beyond engines and into components and purchasing.

Items under consideration for sharing include transmissions and climate control systems, according to PSA boss Phillipe Varin.

Varin added that the engine tie-up between the two companies could be extended. PSA and BMW's Mini brand currently share a 1.6-litre petrol engine.

Varin said that PSA could offer BMW a new fuel-efficient three-cylinder engine that the French car maker will introduce in 2011. In return PSA could buy larger powerplants from BMW.

“We have set up groups of experts to work on deepening our co-operation on gasoline engines,” Varin told the German newspaper Handelsblatt.

PSA also has a sharing agreement with Mitsubishi to launch its own versions of the Mitsubishi i-MiEV electric city car.

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26 October 2009

Well so far the partnership appears to have been successful so I look forward to future developments. Given that BMW and PSA target different audiences there shouldn't be much risk of the companies treading on each others toes. Nor do I think it will dilute BMW brand appeal as long as the partnership turns out good quality components.

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