TURIN -- BMW AG and PSA/Peugeot-Citroen SA will develop a new, more environmentally friendly version of their Prince engine currently fitted in BMW's Mini and PSA's compact and subcompact cars.
The two automakers also will look at cooperating on other systems and components to reduce development, production and purchasing costs.
Since BMW and PSA began their engine cooperation in 2006, they have built 1.3 million 1.4- and 1.6-liter variants of the engine.
PSA CEO Phillipe Varin said he is confident that the next generation of jointly developed engines "will reach the same success as the current generation."
"We are delighted to continue our engine cooperation and look into options for further collaboration," BMW CEO Reithofer