BMW and Hyundai are considering a partnership to develop and produce a new engine, according to a report by Reuters.
Sources close to the possible tie-up have told Reuters that the two automakers met in Munich yesterday and that discussions are still in the early stages. Development is expected to cost 1-2 billion euros ($1.3-$2.6 billion), which BMW and Hyundai will pay for equally. It’s unclear what kind of engine the two automakers will produce.
Both companies are no strangers to co-developing engines with other automakers. Hyundai and Chrysler previously produced a number of four-cylinders, while BMW and Peugeot currently have a deal to produce engine and hybrid components. The possible partnership between BMW and Hyundai comes on the heels of Mercedes-Benz’s and Infiniti’s recent agreement to produce four-cylinder engines at Infiniti’s Tennessee plant. Production is expected to start in 2014 and the new engine will power vehicles from both automakers.
BMW chief executive Norbert Reithofer told reporters yesterday that “further co-operation partners are currently not foreseen.” Meanwhile, Hyundai’s executive director of corporate communications Chris Hosford told us “the report of a possible engine partnership between Hyundai and BMW is groundless.”