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BMW in talks with GM and Fiat to share engines
By Yoann Besnard on 3 March 2008 | (0) Comments | Permalink
BMW has entered into talks with Fiat and GM to provide them engines and transmissions according to Automotive News.
The rumour doesn’t come as a surprise as the carmaker has set a plan to increase its profitability. Job cuts and pressuring suppliers have already been announced. Sharing costs is another path the company is ready to take.
The carmaker has a joint venture with Peugeot-Citroen which manufactures small engines featured in the Mini models and in the Peugeot 207 and 308 models. The German carmaker wants to share more engines even it means to collaborate with its German enemy, Mercedes. Indeed, the company has also entered into talks with Mercedes to share the platform of the next-generation Mini with the A-class and B-class models. The talks are still being carried despite the Fiat and GM talks.
BMW is getting serious about sharing its technology with other carmakers. However, the intention only concerns the small engines. BMW has no plan to share its bigger engines such as the inline 6 or V8 units, which are the company’s real asset.