DOUVRIN, France - BMW's next-generation Mini will share gasoline and diesel engines with PSA/Peugeot-Citroen, sources say.
The two companies have developed a new 1.4- and 1.6-liter gasoline engine family that will be built in a new E330 million assembly facility inside Francaise de Mecanique, PSA and Renault's joint engine plant here.
The PSA/Mini gasoline engine family, called the Prince, will go into the second-generation Mini that is due to arrive in the fourth quarter of 2006.
The engines also will be used in small and mid-sized PSA models, starting with the Peugeot 207 small-segment car in October 2005.
The new Mini also will get PSA's 1.6-liter diesel engine in 90hp and 110hp versions, said sources at the June 21 launch of the two companies' gasoline engine cooperation here.
Currently Toyota supplies a 1.4-liter diesel engine for the Mini. This engine is widely perceived as too weak, although it will get a boost to 88hp from 75hp in September for the remaining 12 months of the current Mini.
BMW has not officially announced who will supply the next Mini's diesel engine.
Both BMW and Toyota declined comment on which diesel the next Mini will use.
The current Mini's 1.6-liter gasoline engine is built at Daimler-Chrysler and BMW's joint venture engine plant in Brazil. Critics complain the engine uses too much fuel.
The next Mini will be offered with six-speed manual and automatic transmissions from as-yet-unnamed suppliers.
BMW will scrap the current model's optional continuously variable transmission and five-speed standard transmission, both from Getrag.
Said a BMW source: "CVT is not suitable for a sporty car such as the Mini." He also said that a six-speed transmission is better than five-speed for a premium model such as the Mini.
BMW sources said the company's alliance with PSA to develop gasoline engines is saving the company several hundred euros per engine.
Investment expenditures are being split based on the number of engines delivered to each carmaker, with PSA getting 80 percent of the production and BMW 20 percent.
- Wolfgang Eschment contributed