Mike Stevens | Feb 4, 2010

AFTER CONFIRMING last year that the two companies were in discussions, PSA Peugeot Citroen and BMW have confirmed that their successful engine partnership will continue.

A new agreement, signed this week, will see the two European carmakers working together on the next generation of the four-cylinder petrol engine currently used in a number of BMW, Peugeot and Citroen models.

The agreement was signed by Norbert Reithofer, Chairman of the Board of Management of BMW AG, and Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën, in Paris.

"We have always been very successful in our cooperation with our partners, and that is particularly true with regard to PSA. We are delighted to continue our engine cooperation and look into options for further collaboration," Mr Reithofer said for BMW.

Speaking for PSA Peugeot Citroen, Mr Varin said that the deal confirms the success of the existing cooperation between the two companies, which has seen some 1.3 million engines built since 2006.

"I am confident that the next generation of jointly developed engines will reach the same success as the current generation."

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