BMW forges links with PSA

Feb 3 2010 Maurice Glover

BMW forges links with PSA

BOFFINS at two major European automotive groups are considering producing parts for use across all their model ranges.

BMW and PSA Peugeot Citroen will explore the potential of joint development and production of components in a fresh move to combat spiralling manufacturing overheads.

The plan was revealed when the firms signed a deal to extend cooperation that began several years ago with the acclaimed four-cylinder petrol engine that powers MINI, Peugeot and Citroen models.

As well as continuing to work to bring the 1.6-litre unit into line with tougher emission standards in EU6 regulations, the groups also confirmed joint operations in 'other possible areas' at system and component level.

'The aim is to leverage synergies in the development, production and procurement of selected components,' said a spokesman.