Peugeot-Citroen CEO Christian Streiff revealed in a recent interview that the automaker is considering a joint-venture with BMW and Mercedes to develop future engines. PSA/Peugeot-Citroen is Europe’s second-biggest volume car maker.
Streiff told Germany’s Die Zeit that such a deal was possible and that he wouldn’t exclude it.
Many automakers are realizing the financial benefits of joint-ventures, even if it is with rival companies. Just recently, Daimler Chrysler , BMW and General Motors partnered to develop hybrid technology and Peugeot-Citroen and BMW have worked together in the past to co-develop a gasoline engine. BMW CEO Norbert Reithofer has also stated that the automaker would be open to partnering with Mercedes.
Partnering with the BMW and Mercedes would help Peugeot-Citroen spread the estimated $1 billion it will cost to build the new engine plant.
