PSA Peugeot-Citroen Wants Greater Ties To BMW

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Oct 28, 2009
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REPORTS IN AUGUST suggested that PSA Peugeot-Citroen and BMW had been investigating opportunities to grow their existing partnership. This week, PSA boss Phillipe Varin confirmed his company's interest.

Varin confirmed on Monday that he is in talks with BMW CEO Norbert Reithofer to lock in purchasing and component deals, including transmissions and climate control systems.

Varin wants to offer BMW a new fuel-efficient three-cylinder engine scheduled for 2011, in exchange for the opportunity to buy larger engines from BMW.

BMW currently uses a pair of PSA-sourced diesel and petrol 1.6 litre engines in its MINI line-up, but co-operation between the two companies may expand in the near future if preliminary negotiations go well.

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“We have set up groups of experts to work on deepening our cooperation on gasoline engines,” Mr Varin told German paper Handelsblatt this week.

 

BMW has indicated in the past that it will not entertain any merger possibilities, and Varin confirmed this week that PSA likewise has no plans to merge with another carmaker.

PSA plans to increase its component and platform alliances, allowing the carmaker to remain independent, while offering products in as many segments as possible.

The French carmaker currently shares two platforms with Fiat, one with Toyota and one with Mitsubishi.

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Comments

  • Car Care Company [reply]
    5 months ago 0 points
    It is good to see that the relationship between BMW and PSA Citroën continues to advance. With the current economic situation of being big is important BMW needs to hook up with someone else to help things out. PSA Citroën is approx 3 times the size of BMW and has been a good choice for them in the past and should continue to be into the future.
    Good article thanks,
    Denis
  • Black Mans Wheels [reply]
    5 months ago 0 points
    By making 3 times as many cars dose not make you 3 times bigger. income about the same, Profit 2008 also about the same psa has twice as many workers. Bmw group own Rolls Royce, MINI, M. BMW motorad Where as psa own PEUGEOT citroen. You tell me which one is larger. BMW is also valued more. its viewed as a blue chip company not just as a car company. Peugeot needs BMW more the BMW needs psa.

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