BMW and Peugeot to Collaborate on Engines

 From Europe this morning comes word that BMW and PSA Peugeot Citroen have 
agreed to work together in developing a new gasoline engine that BMW aims 
to stuff in the Mini and would also be used in future Peugeot and Citroen 
vehicles. BMW was not clear as to why it wants a smaller engine for the 
Mini and it hasn't released information on the size, configuration or 
displacement of the new engine. Power for the current Mini models comes 
from two variants of a four-cylinder engine built jointly by BMW and 
DaimlerChrysler in South America and diesel engines for the Mini are 
produced in a venture with Toyota.

The two companies will invest euro 750 million to capitalize the project, 
which will eventually build as many as one million units a year. BMW R&D 
will do the design for the engine while Peugeot Citroen will be responsible 
for manufacturing and procurement.