Germany's BMW Group and France's PSA Peugeot Citroën already have collaborated on a fuel-efficient four-cylinder gasoline engine, which currently is used in several MINI, Peugeot and Citroën models. The partnership already has produced 1.3 million engines since 2006.
The two companies now are agreeing to develop the next generation of this engine, to meet Europe's stringent EU 6 requirements for clean burning engines with reduced carbon emissions.
BMW and Peugeot Citroën will be cooperating at what is described as the "systems and component level", to streamline costs and production.
