BMW-PSA small engine collaboration to end in 2016

It’s the end of the road for the BMW-PSA Peugeot Citroen engine partnership in three years – reports indicate that the two automakers are not renewing their small engine collaboration when the project expires in 2016. Spokesmen for both companies have stated that the current engine program will continue until then.

Reuters reports that a source close to the matter says that both companies no longer need the cooperation, with BMW pushing ahead with its own 3, 4 and 6 cylinder engine development, while PSA Peugeot Citroen is forging stronger ties with General Motors. Les Echos, a French newspaper, also said that both parties had decided against extending the collaboration.

The partnership began in 2002, when both companies agreed to jointly develop and build smaller displacement engines – the Prince engine that found its way on to MINIs, Peugeots and Citroens was the highlight of the cooperation.

In 2010, BMW and PSA announced that they were set to expand on the working relationship with a joint development of hybrid components for front wheel drive vehicles with electric drivetrains. This project fell through last year in response to the announcement that PSA Peugeot Citroen and GM had formed an alliance.