December 2, 2013 / 8:31 AM / 4 years ago

BMW says no decision yet on future of PSA engine deal

PARIS, Dec 2 (Reuters) - German luxury carmaker BMW and France’s PSA Peugeot Citroen have not yet decided whether to extend or end their partnership on small petrol engines when the project expires in 2016, BMW’s boss said in a newspaper interview.

Norbert Reithofer also said the two groups had looked at various projects together but that none worked because of “incompatible product renewal cycles”.

“We have an agreement to work with PSA until 2016. We have decided to talk again next September to assess whether there can be further cooperation between BMW and PSA. No decision has yet been made,” Reithofer told French daily Les Echos.

Last September, Les Echos reported the two carmakers had decided against extending their partnership on small petrol engines, citing a source close to the German carmaker.

Reithofer has said in the past that BMW no longer needed PSA’s help on motors since it was developing its own scalable engine architecture for three, four and six-cylinder petrol and diesel engines that would keep costs low.

PSA has been scaling down partnerships with other carmakers since its alliance with General Motors. (Reporting by Dominique Vidalon; Editing by Mark Potter)

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