First news around a deeper collaboration between BMW PSA Group surfaced back in February when a BMW delegation has met with representatives of the French government to talk about a closer cooperation between the Munich based automaker and PSA.
BMW already cooperates with the French company PSA in developing engines for the MINIs, the 1.4-liter and 1.6-liter engines which are used in the Peugeot 207 and 308 and in the Citroen C4 and C4 Picasso.
Quoting PSA CEO, Phillipe Varin, AutoNews reports PSA Group aims to deepen ties with BMW Group. Varin said he is talking with BMW CEO Norbert Reithofer about cooperation in areas such as purchasing and components including transmissions and climate control systems.
Varin said PSA could provide BMW a new fuel-efficient three-cylinder engine for its upcoming efficient vehicles. The French carmaker aims to introduce the 3 cylinder engine in 2011. In exchange, PSA could buy larger engines from BMW.
To extend the cooperation, Varin has gone a step further in discussing a plan of co-purchasing transmissions and HVAC units.
Past rumors also revolved around the idea of a future 1 Series model powered by four-cylinder bangers produced by PSA, but no further information were released at this time.