PSA CEO Varin aims to deepen ties with BMW
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.
Currently, PSA and BMW's Mini brand share a 1.6-liter gasoline engine. Varin said PSA could offer BMW a new fuel-efficient three-cylinder engine that the French carmaker will introduce in 2011. In return PSA could buy larger engines from BMW.
“We have set up groups of experts to work on deepening our cooperation on gasoline engines,” the German business daily Handelsblatt quoted Varin as saying.
Varin said PSA will not merge with another automaker. The Peugeot family wants the company to remain independent, he said.
Instead PSA is looking to build up more alliances such as its cooperation with Mitsubishi on electric cars. PSA plans to launch its own versions of the Mitsubishi MiEV electric city car for the Peugeot and Citroen brands.
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