Peugeot and BMW Will Allow Engine Deal to Expire in 2016

BMWBMWGermany, 1918 > present87 models
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and PeugeotPeugeotFrance, 1882 > present120 models
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began sharing co-developing engines in 2002, and they have been used in MiniMINI (BMW)Germany, 2000 > present15 models
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, PeugeotPeugeotFrance, 1882 > present120 models
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7 videos
, and CitroënCitroënFrance, 1919 > present94 models
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models, but according to insiders speaking to the Les Echos newspaper, the two automakers will likely let the deal expire when the contract ends in 2016.

While the partnership has been a success with the engines winning multiple Ward’s best awards, BMW has its new modular engine family that will fill the same role, and Peugeot has a new parts sharing deal with GMGMUnited States of America, 1998 > present8 models
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. The contract has simply come to its natural end.

BMW’s modular engine family allows for 500cc cylinders to be grouped together up to a 3.0-liter inline six in turbocharged, naturally aspirated, petrol, diesel and hybrid variations. The new engines will debut in the third generation MiniMINI (BMW) MINI VisionGermany, 2013 > 2013 that will go on sale in 2014.

While Peugeot does not have a replacement ready immediately, its partnership with GM will likely have a new family of small engines ready by that time.

Source: Automotive News Europe